What Happens if You Get a Lawsuit Settlement After a Bankruptcy Discharge
After a personal bankruptcy, a business owner received a significant judgment on a claim that was being litigated by his solely owned business. The business was included on the bankruptcy, at minimal value, but the lawsuit was not disclosed. Will the trustee seek to reopen the bankruptcy?
Re: Getting a Lawsuit Settlement After a Bankruptcy Discharge
If the trustee learns of the settlement, you can expect that the trustee will reopen the bankruptcy and try to recover money for the creditors. Continued nondisclosure may raise questions of whether the initial nondisclosure was an oversight or a fraudulent omission. Discuss the details of the bankruptcy and settlement with your bankruptcy lawyer.