On May 22, 2019, the Bankruptcy Court for the Southern District of Texas denied the Creditor’s complaint for revocation of discharge.
Prior to the bankruptcy, the Creditor obtained a default judgment against the Debtor. The default judgment listed the Creditor’s attorney’s address as 122 Taum Street.
The Debtor filed a chapter 7 bankruptcy, listed the Creditor, but the address was listed as 122 Yaum Street. There was no dispute that the address was correctly listed except for the one letter deviation between “T”uam and “Y”uam. Subsequently, the bankruptcy court entered an order of discharge.
Three months later, the Creditor filed the adversary proceeding requesting a revocation of Debtor’s discharge for fraud under 11 U.S.C. § 727(d). The Creditor argued that the spelling mistake was intentional, and that the Creditor received no notice and could not participate in the Debtor’s bankruptcy. The bankruptcy court conducted a trial and took the case under advisement.
Before the bankruptcy court were the following issues:
- Is a Debtor’s fraud vis-à-vis the Creditor a basis to revoke discharge?
- What type of fraud justifies revoking a discharge under § 727(d)?
- What is the burden of proof?
- What evidence supports fraud?
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