Who May reopen a chapter 7 Bankruptcy case in Manhattan?
In New York City once a Bankruptcy case has been discharged a debtor or any party in interest may reopen the case. For instance, if Dell computers never received actual notice of a Chapter 7 filing and there were assets distributed he can have the case reopened to contest the discharge or seek monetary damages. A debtor may reopen a case to have a creditor added to the bankruptcy.
What does this mean to you?
Not very much. It is very rare for these cases to be reopened and there is very little that creditors can achieve by reopening a chapter 7 case. It is expensive to do and especially where there is a no asset case then there was nothing to distribute anyway.
If you are considering filing for bankruptcy please contact my office for a free, in-debth bankruptcy evaluation at 212-244-2882.