Should we infer that this was a zero assets Chapter 7 discharge?
If the insurance company denies the claim, the creditor would have to consider its options in trying to recover compensation for the damages through the bankruptcy proceedings, and unless they can show something that makes the debt nondischargeable (e.g., fraud) I would expect the claim for the damages to have been discharged as part of a zero assets Chapter 7 case. If your lawyer is perplexed, perhaps there are additional facts that she is considering that, as of yet, we don't know.

