Do I need to reopen case for filing omitted creditor and prosecuting
Posted: Fri Feb 15, 2019 12:21 pm
I am trying to decide if I need to reopen the Chapter 7 case for an omitted creditor who wants to file a nondischargeability action for fraud under 11 U.S.C. 523(a)(2).
The case was pending in state court as a contract action, but the complaint is being amended to one under fraud. We would like to litigate the dischargeability issue in state court.
However, while Beezley says you don't have to reopen a case to list an omitted creditor, it says nothing about whether you have to start an adversary proceeding if you're alleging fraud. And there are cases that say for this type of action the bankruptcy court has exclusive jurisdiction. Nothing I know of says that's unnecessary with an omitted creditor.
Can I please have an opinion or two as to whether I need to reopen the bankruptcy case and start an adversary proceeding, even if the bankruptcy court allows us to litigate in state court?
Thank you
Steve Lever
Law Offices of Steven B. Lever
Steven B. Lever
* Tel. (562) 436-5456 ext. 1
* Fax (562) 485-6886
* sblever@leverlaw.com
www.leverlaw.com
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I am trying to decide if I need to reopen the Chapter 7 case for an omitted creditor who wants to file a nondischargeability action for fraud under 11 U.S.C. 523(a)(2).
The case was pending in state court as a contract action, but the complaint is being amended to one under fraud. We would like to litigate the dischargeability issue in
state court.
However, while Beezley says you don’t have to reopen a case to list an omitted creditor, it says nothing about whether you have to start an adversary proceeding if you’re
alleging fraud. And there are cases that say for this type of action the bankruptcy court has exclusive jurisdiction. Nothing I know of says that’s unnecessary with an omitted creditor.
Can I please have an opinion or two as to whether I need to reopen the bankruptcy case and start an adversary proceeding, even if the bankruptcy court allows us to litigate
in state court?
Thank you
Steve Lever
Law Offices of Steven B. Lever
Steven B. Lever
(
Tel. (562) 436-5456 ext. 1
(
Fax (562) 485-6886
*
sblever@leverlaw.com
www.leverlaw.com
******************************************************
This Internet e-mail contains confidential information
which is intended only for the addressee and which may
be privileged under applicable law. Do not read, copy
or disseminate it if you are not the addressee. If you
have received this message in error, please notify the
sender immediately and delete it. Thank you.
******************************************************
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