Statute of Limitations

[jst4f]

Reading threads on this forum raised a question: How long after a discharge/closed bankruptcy can a TT reopen a case?

[justbroke]

They can re-open the case for one-year after the discharge of the case for any general administration including (but not limited to) concealment of assets, undisclosed transfers, and assets that were discovered "late". However, if there is more serious fraud, the complaint to seek a revocation of the discharge could be years after the case closed. Additionally, serious bankruptcy fraud is criminal and will probably referred to the U.S. District Court for prosecution.

According to the Chapter 7 Trustee's guide at the U.S. Department of Justice...

A discharge can be revoked within one year after it was granted if the discharge was obtained by fraud and the requesting party was not aware of it until after the discharge was granted. § 727(d)(1) and (e)(1). Alternately, pursuant to § 727(d)(2) and (3) and (e)(2), before the later of one year after the granting of a discharge or the date the bankruptcy case is closed, the discharge may be revoked on the following grounds:

1. the debtor acquired or became entitled to property that would be property of the estate and knowingly and fraudulently concealed it from the trustee; or

2. the debtor refused to obey a court order or to respond to a material question after a grant of immunity if the privilege against self-incrimination was invoked.

If the trustee has information that would support an objection to discharge but deems such an action inadvisable, the trustee should promptly bring such facts to the attention of the United States Trustee. In some cases, the United States Trustee has been held to have constructive notice of information acquired by a trustee and has been precluded from bringing an action to revoke the discharge.