I received my discharge for a chapter 7 filing on May 22nd, 2018. Around June 20th, 2018, I received a couple of checks totaling $1,800 due to a class action lawsuit filed against my former employer.
I did not include this lawsuit info on my petition due to the fact that I forgot about it. As soon as I realized, I went back and looked at mail that I keep, and noticed that around Aug 2015 I received a letter notifying me of the class action lawsuit, which stated that I did not have to do anything to become a member, so that's the main reason why I forgot completely about this.
So my question is, does reopening my case has any effect on the discharge? Meaning if my bankruptcy case can be dismissed if this property cannot be exempted?
I've contacted my attorney, but due to the holiday he is out on vacation
I will re-position this question or bankruptcy attorneys will see it and be able to respond.
This appears to be a duplicate post. Please see my earlier response.
You are not my client and I am not your attorney. This advice is given in the spirit of the AVVO platform and is based on general legal principles. You become a client when you enter into a formal retainer agreement with me.
I'm not sure I'd hope worried you'll lose your discharge due to this impaired at, like you want to dismiss it if you can't keep the class action funds.
Reopening the case will not have an effect on your discharge unless there are specific grounds to set the discharge aside: fraud on your part. Fraud requires knowingly misrepresenting your assets or other important information. It sounds like this was simply overlooked, do an assertion of fraud is unlikely.
If you are unable to exempt the settlement, and the trustee wants turnover of the settlement funds, you're not going to be able to dismiss your case, as it wouldn't be in the best interest of creditors. BTW dismissing a bankruptcy would result in the loss of your discharge, so it's probably not your best course of action in any event.
This response is not intended as legal advice. You may need to consult your own attorney to obtain a more specific answer.
The most likely scenario is that you reopen your case, add this claim and exempt it. The trustee will look at it and then determine that itis not worth the trouble. The next most likely is that the trustee demands you turn over the payments you've received. While it is possible the trustee will seek to recover your dischargeit would only be if the trustee thinks you failed to disclose this asset with the intent to hide it from him.
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