Although your question is not entirely clear, I understand you to be asking if it is lawful for a person to close down a business, discharge his or her debts, and then reopen the business. The answer is that it depends on the circumstances. This kind of scam is sometimes known as 'flush and switch.' The important questions include whether the debtor reopened exactly (or nearly exactly) the same business after the bankruptcy; and whether the debtor transferred away anything valuable belonging to the business for less than fair value during the period leading up to the BR. (There are some other questions as well.) You can have this looked into by organizing all the information you have about this person and these transactions, and sending them with a letter to the debtor's case trustee and also the United States Trustee for your federal district. It is not hard to get the names and addresses you will need.
Answered on Mar 16th, 2017 at 6:39 AM