Debtors filed a Chapter 7 petition, but neglected to disclose an action pending against them in a Virginia state court. A creditor was seeking damages from an adoption action.
After the meeting of creditors, the trustee filed a report of no distribution.
A month before the deadline to file dischargeability actions, the Debtors filed an amendment to add the creditor which had previously not been listed. The Debtors’ lawyer mailed a copy of the Notice of Filing with the deadline by which to file complaints to determine dischargeability of debt.
The newly added creditor filed a Motion for Relief from Stay which stated that “the creditor has alleged conduct that is not dischargeable.” The Motion contained no prayer for relief so the Court issued a deficiency notice and the creditor filed an Amended Motion which asked for relief from the stay but failed to ask the Court to determine whether the alleged debt owed to her by the Debtors was dischargeable.
On the same day that she filed her Motion for Relief, the creditor filed a “nonsensical” Notice of Objection to Claim. There were no claims filed in this case.
The Court granted a Discharge to the Debtors. After Discharge, the Debtors responded the the Motion for Relief, and alleged that the creditor failed to properly raise an exception to discharge prior to the deadline or filing a complaint.