Can a discharge reverted back
Recently, someone that I know filed bankruptcy and got an automatic discharge last month. This person owes me money but I cannot prove it because I gave him cash without any receipt or invoice. I trusted him but made a huge mistake. Therefore, I was not able to oppose his discharge. It was funny that none of the banks or credit card companies opposed either. There is no way this person is going to pay me back the amount he owes to me which is $4000.
I did an investigation and got valuable info from reliable sources.
The amount that he filed was around $280,000 and he claims that he lost all of this by GAMBLING, which is not true. He just decides to not to pay and probably transfered to some other bank accounts.
Now, I am failing to understand, in this type of situation how someone can get a discharge without having a hearing or questioning or examining? Is our system failing?
According to bankruptcy and insolvency act 173.1.(e)
`Bankrupt has bough on, or contributed to, the bankruptcy by rash and hazardous speculations, by unjustifiable extragavance in living, by GAMBLING`.
So this person should have had a court hearing.
At least, his trustee should have had opposed his automatic discharge.
I also found that, the person that is filing bankruptcy claiming that his/her cause of bankruptcy is GAMBLING, ordered by court to re-pay some of these losses.
In addition to above, I also found that this person tricked CRA but caught (thank god) and ordered to pay what he owes to tax office +interests. I guess this was in his bankrupt file as well.
So my questions are:
Can a discharge reverted back if it proved that there is been a mistake or fraud?
Can Office of the Superintendent of Bankruptcy take my findings seriously? (if i was to stay anonymous or not).
Who else can I report this issue?
Now, you might ask why I did not act before. My findings are new and also thought that Office of the Superintendent of Bankruptcy will do something about it.
Thanks
If it can be demonstrated that a discharge was granted based on fraudulent information then the discharge can be reveresed.
As to whether the superintendent will take this seriously or not I cannot comment, being a division of the government sometimes things that the rest of us view as reasonable just simply don’t make their radar for whatever reason.
In terms of the trustee opposing, if no substantial evidence was provided to suggest an opposition was necessary or the bankrupt neglected fulfill his obligations under the act then the trustee may not have grounds to oppose.