State Bank of India v. Chalasani (In re Chalasani)

CARDAMONE, Circuit Judge:

This bankruptcy appeal poses two questions. The first — when a defendant in an adversary proceeding may undo a default judgment — is readily resolvable; the second — whether another interested creditor may enter an action seeking a denial of discharge under 11 U.S.C. § 727 and prosecute that claim itself, where the plaintiff has voluntarily dismissed the complaint — requires more analysis.

We set forth briefly what occurred. In order to justify reopening and amending a judgment that had discharged a Chapter 7 debtor and to provide § 727 relief to all creditors, the…