If an employee falls down at work is placed on disability but is found not “disabled” and then charged with “fraud,” is this debt nondischargeable?
The discharge of a debt may be denied in Chapter 7 if the Bankruptcy court determines that it was the result of fraud. [ 523(a)(2)] Determining what is and is not fraud may be a little more complex than what it first seems. First, the creditor has to object to the discharge within 60 Days After 341 Meeting. This objection to discharge must be made even if another court has found that the debtor has committed fraud, since the requirements to prove fraud may have been different in that court. This is especially true if the fraud has been established in a “default” proceeding where the debtor did not appear, and there was no presentation of evidence. Second, the creditor must prove that there has been actual fraud.
Related Questions
- If an employee falls down at work is placed on disability but is found not "disabled" and then charged with "fraud," is this debt nondischargeable?
- How is the disabled employee made accountable for absenteeism from the secondary position due to an unrelated sickness or disability?
- How is the disabled employee made accountable for absenteeism from the original position due to the service-connected disability?
