Consumer Bankruptcy:

Reopening a Bankruptcy Case

Bankruptcy cases can be reopened, in order to deal with relevant financial developments. One such reason is if the filer received an inheritance, a life insurance payout, or a divorce settlement within 180 days of filing. The case would be reopened in order to properly administer the new assets. A bankruptcy trustee might also attempt to reopen a case if it comes to light that someone provided false information on the bankruptcy petition, sought to conceal property, or practiced some other form of deception. Finally, the petitioner might seek to reopen a case in order to receive a discharge on a debt that a creditor continues to pursue.

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