Property developer Sean Dunne has given up his chance to walk away from his debts in the United States and now stands liable for the €700m he owes his creditors.

In a dramatic development at the bankruptcy court in Connecticut, Mr Dunne's lawyer said that he was waiving his right to discharge under his bankruptcy application.

This means that his estate remains the property of the court-appointed trustee Richard Coan, but Mr Dunne can no longer benefit from any protection against his debts.

His creditors can pursue him for monies owed, including from present and future assets and earnings.

The development, however, also means that Mr Dunne does not have to reveal information relating to his assets and his estate to the court.

The Connecticut court had been due to hear motions today compelling Mr Dunne and his wife, Gayle Killilea, to provide private documents and information to the court.

In the normal course of bankruptcy, a person gives up their estate to the control of a bankruptcy trustee for them to recover as much as they can for that person's creditors. 

In return for this and for full disclosure of one's financial dealings, by the end of the process, the debtor is cleared of the debts they had at the time of filing and creditors can no longer pursue them.

By beginning these bankruptcy proceedings and now giving up his right to protection from his debts, Mr Dunne is essentially worse off than if he had never started bankruptcy proceedings in the US.

Now the bankruptcy trustee keeps his assets but he cannot get any protection against his creditors.

It also means that his creditors can come after him for any income he has earned since he filed for bankruptcy in March 2013, for example wages, consultancy fees, and any assets that he has accrued since then, eg cars, property etc.

However, by agreeing to be fully liable for all his debts, Mr Dunne will not have to reveal information and private documents that the bankruptcy trustee and lawyers for NAMA and Ulster Bank were seeking to uncover.

Mr Dunne originally filed for bankruptcy in the US in March 2013, where the conditions are less onerous than Ireland.

However, he was subsequently declared bankrupt in Ireland in July of that year, following an action taken by Ulster Bank in the High Court.

In the intervening 20 months since Mr Dunne originally filed for bankruptcy in the US, there have been multiple court hearings, as lawyers for the Trustee and NAMA sought to get information from Mr Dunne and his wife.

Then in August of this year, after an already protracted legal process and in a dramatic turnaround, Mr Dunne applied to the court to have his application for bankruptcy completely dismissed.

That request was challenged by his biggest creditors - NAMA and Ulster Bank.

The court-appointed trustee had also objected to his efforts to end his bankruptcy process, making arguments surrounding their concerns that if Mr Dunne was allowed to withdraw from the bankruptcy process in America, that he would ultimately never be answerable for his substantial debts.

However in early November, Mr Dunne's lawyer lodged legal papers with the Connecticut bankruptcy court, saying that the 60-year-old wished to withdraw that motion to end his bankruptcy proceedings. 

No reason was given for that turnaround.

With that, lawyers for NAMA reactivated their efforts to seek documents and information relating to Mr Dunne's financial dealings that he had previously denied them.

Those motions were due to be heard at a court sitting in Connecticut today, however before that proceeded, Mr Dunne's lawyer James Berman said that Mr Dunne wished to waive his right to discharge.

One of the lawyers for NAMA, Thomas Curran, said that for the waiver to proceed the court must receive it in writing, signed personally by Mr Dunne, not his legal representative.

Judge Alan Shiff ordered the document to be filed to the court by this Friday, but said that as the court did not use paper anymore, he considered today's declaration by Mr Dunne's lawyer sufficient, saying: "It's done. It's on the record. He has waived his discharge."

That then rendered the hearing of today's motions moot.

Today's development means that there will be no hearing of Mr Dunne's bankruptcy application, which had been scheduled for 7 January 2015.

However, Mr Coan can continue to trace any assets that he believes Mr Dunne has but has not declared, or assets that he may have purposely transferred to others so they would be beyond the reach of the creditors.

Mr Coan told the Connecticut court on a previous occasion that he was "strongly considering" taking further legal actions against Mr Dunne in an effort to recover tens of millions of euro which he has transferred to his wife.

Mr Dunne has already admitted transferring more than €40m to his wife and said that he wished he could have transferred more.

Today's development in the US bankruptcy proceedings does not, at this stage, impact upon the Irish bankruptcy-related proceedings.