To: Reader
From: Donica Dalzell
Re: Revocation of bankruptcy
Facts
John filed for bankruptcy. During his bankruptcy proceeding, Josh claimed that he had never
been sued. However, Josh had once been sued for intentional in$iction of emotional distress. Josh was
embarrassed about the suit that took place several years earlier and therefore did not disclose it during
the proceedings. The suit however did not have any impact on Josh’s finances during the time of his
bankruptcy. Josh’s bankruptcy was granted and all his debts were discharged in the proceeding.
Issue
Can Josh’s bankruptcy be revoked because of Josh’s lie pertaining to not having previously been
sued?
Applicable Law
In Alleman v. Kitson (In re Kitson), 341 Fed. Appx. 234 (7th Cir. Ill. 2009), the appellant creditors
appealed an order of the bankruptcy court claiming that the defendant was not eligible for discharge
due to misstatements and omissions. The courts found that the information that was inaccurate was
immaterial to the bankruptcy and the court a5rmed the district court’s judgment.
