A known creditor, which was aware of a debtor’s pending bankruptcy but did not receive legally required notice of the debtor’s chapter 11 case, was not barred from bringing a state action following bankruptcy discharge.
The U.S. Court of Appeals for the First Circuit held that actual knowledge of the pending chapter 11 case did not satisfy due process requirements; therefore, the known creditor’s subsequent claim was not barred by the debtor’s discharge injunction. Arch Wireless, Inc. v. Nationwide Paging, Inc. (In re Arch Wireless, Inc.), 534 F.3d 76 (1st Cir. 2008).
USA, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Debtor, Injunction, Federal Reporter, Due process, Conveyancing, Bankruptcy discharge, United States bankruptcy court, First Circuit