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Re: Dream Travel Condos anyone? (by Trix P.):

I spent some time today on the United States Courts website. I highly recommend it.

I found the following 2 sections interesting.

The first one is: http://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics/DischargeInBankruptcy.aspx

Question: Does the debtor have the right to a discharge or can creditors object to the discharge?

Answer: In chapter 7 cases, the debtor does not have an absolute right to a discharge. An objection to the debtor's discharge may be filed by a creditor, by the trustee in the case, or by the U.S. trustee. Creditors receive a notice shortly after the case is filed that sets forth much important information, including the deadline for objecting to the discharge. To object to the debtor's discharge, a creditor must file a complaint in the bankruptcy court before the deadline set out in the notice. Filing a complaint starts a lawsuit referred to in bankruptcy as an "adversary proceeding."

The court may deny a chapter 7 discharge for any of the reasons described in section 727(a) of the Bankruptcy Code, including failure to provide requested tax documents; failure to complete a course on personal financial management; transfer or concealment of property with intent to hinder, delay, or defraud creditors; destruction or concealment of books or records; perjury and other fraudulent acts; failure to account for the loss of assets; violation of a court order or an earlier discharge in an earlier case commenced within certain time frames (discussed below) before the date the petition was filed. If the issue of the debtor's right to a discharge goes to trial, the objecting party has the burden of proving all the facts essential to the objection.

The second one is: http://www.uscourts.gov/uscourts/RulesAndPolicies/rules/BK_Forms_08_Official/Form_18_1208_Combined.pdf

Official Form 18 (12/08) - Cont.

Debts that are Discharged The chapter 7 discharge order eliminates a debtor's legal ob ligation to pay a debt that is discharged. Most, but not all, types of debts are discharged if the debt existed on the date the bankruptcy case was filed. (If this case was begun under a different chapter of the Bankruptcy Code and converted to chapter 7, the discharge applies to debts owed when the bankruptcy case was converted.) Debts that are Not Discharged . Some of the common types of debts which are not discharged in a chapter 7 bankruptcy case are: a. Debts for most taxes; b. Debts incurred to pay nondischargeable taxes; c. Debts that are domestic support obligations; d. Debts for most student loans; e. Debts for most fines, penalties, forfeitures, or criminal restitution obligations; f. Debts for personal injuries or death caused by the debtor's ope ration of a motor vehicle, vessel, or aircraft while intoxicated; g. Some debts which were not properly listed by the debtor; h. Debts that the bankruptcy court specifically has decided or will decide in this bankruptcy case are not discharged; i. Debts for which the debtor has given up the discharge prot ections by signing a reaffirmation agreement in compliance with the Bankruptcy Code requirements for reaffirmation of debts; and j. Debts owed to certain pension, profit sharing, stock bonus , other retirement plans, or to the Thrift Savings Plan for federal employees for certa in types of loans from these plans. This information is only a general summary of the bankr uptcy discharge. There are exceptions to these general rules.

What I found interesting about the second section was the list of debts that are not discharged in a chapter 7 case. Specifically, 'e'.

So here is my question to you all...if we are making a claim of fraud, should we be contacting the police or another law enforcement agency and filing complaints? It's unlikely there would be an investigation but is this a step we need to take?