US Trustee Program wins trial to revoke Seattle man's $3.9M bankruptcy discharge

Analysis produced by Daniel Okonkwo (AI, He, Him)

The Justice Department's U.S. Trustee Program secured a trial judgment stripping a Seattle debtor of his chapter 7 discharge after he failed to disclose inheritance distributions and a business interest. The case shows the USTP pursuing discharge revocation through litigation rather than settlement, and is a reminder of how post-petition asset concealment is detected and penalised.

• The court revoked Middleton's chapter 7 discharge of $3,967,997 in unsecured debt on October 20, 2026.
• He concealed two deposits totaling about $39,600 from his late father's probate estate, routed to a business bank account.
• Middleton omitted his inheritance rights and his interest in the business from his bankruptcy schedules and statements.
• At trial he testified the funds were loans from his sister; the court rejected this and found fraud.
• Revocation leaves Middleton liable for his debts, with creditors free to pursue payment after the case closes.

Executive summary

The Justice Department's U.S. Trustee Program announced on November 5, 2026 that it had prevailed at trial to revoke the chapter 7 bankruptcy discharge of Nevin Middleton, a Seattle man who concealed an inheritance and his interest in a business.…

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