Is there any way to recover money owed after a debt has been discharged?
Question Details:
I own an S corp. Last year, a sub-contractor, who owed my company $20,000, filed for bankruptcy and the debt was discharged by the court. Less than 1 year later, the sub-contractor has opened a new business, and is in the process of building a facility that would certainly be valued in excess of $20,000. I am certain the sub-contractor hid certain assets from the court, as well as cash, and I want to know if there is any way to seek restitution through the court?
A discharge, such as through bankruptcy, eliminates the debt; it cannot thereafter be pursued, even if the debtor later has sufficient assets that he or she could pay the debt. IF it can be proven that a fraud was committed on the bankrutpcy court and process, that *may* be enough to open the discharge back up and seek payment of debts--but that would be a *very* high bar to get over. If you believe that this may have been the case, you should consult with a bankruptcy attorney to discuss the matter, including whether you could do this, what evidence might be required, the odds of success, and also, critically, the cost to pursue.
