CLOSED BANKRUPTCY CASE MAY BE REOPENED TO LITIGATE DISCHARGEABILITY ISSUE

（ PART 1 ）
Once a Chapter 7 bankruptcy is filed, the clerk of court sends out a notice of case commencement to all creditors listed

an objection to dischargeability, or fails to timely file a motion to extend the time to file an objection, then the creditor’s right to object to dischargeability is forever lost, unless the creditor was not listed in the mailing list. For example, debtor owes you $200,000 because you sold him a restaurant. Out of the $200,000, debtor paid only $20,000. Thus, debtor still owes you $180,000 of the purchase price. With the $20,000 payment, the restaurant is turned over to debtor who operates it for one year. Unable to turn a profit, debtor decides to shutter the restaurant after 12 months. He does not pay you the balance of $180,000. He files for Chapter 7 bankruptcy but does not list you as a creditor. Unaware of his bankruptcy, you sue in state court to recover the $180,000. Eventually, he gets a discharge. In his state court lawsuit, one of his defenses is that he has a bankruptcy discharge that wipes out your claim completely. His bankruptcy case has been closed for 90 days when you find out about it. The deadline to object to dischargeability of your claim expired 150 days ago.

Can you file a motion to reopen the bankruptcy case on the ground that you were not listed in the petition as a creditor, had no notice of the bankruptcy, so the deadline to object to dischargeability does not apply to you? You sure can.

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