How can I reopen a Ch 7 BK as an unlisted creditor?
My wife and I sold a vehicle to an acquaintance in mid-2004 and have a promissory note for the loan. The note identifies the vehicle (by VIN) as the security instrument but we failed to retain title or lien. The borrower made regular payments until mid-2006, since defaulting last year he has claimed he knows he owes us money, but keeps asking for more time. When we filed in small claims he produced a bankruptcy discharge from mid-2005, on which we were not listed as creditor, nor the vehicle disclosed as asset (we have the petition). His lawyer claims that he reaffirmed the debt (there is no record) and that we were notified (we were not). Now I am told the omitted debt has an automatic stay and the concealed asset is his to keep. He and his attorney (his brother) knew of the debt and the asset and chose not to disclose them. Now I'm being threatened with contempt of a court discharge order I was never aware of. How can I reopen the bankruptcy?
Re: How can I reopen a Ch 7 BK as an unlisted creditor?
You cannot reopen a Chapter 7 case simply because you were an unlisted creditor. In a no-asset Chapter 7, debts to unlisted creditors are discharged as well UNLESS you have a basis for filing an Adversary Proceeding to have the debt declared non-dischargeable based on (among other things) fraud (unlikely since you were paid for two years). Your security interest was never properly perfected, so your debt would have been considered unsecured, anyway.
If revenge is one of your motives, you could inform the Chapter 7 trustee about the unlisted asset ... if it still has value, you may even receive a few cents on the dollar for your unsecured claim, depending on how much other debt there was.
