RULE 502.
NOTICE REQUIREMENTS FOR DISMISSAL OF PROCEEDINGS TO DENY OR REVOKE
DISCHARGES
No adversary proceeding objecting to or seeking to revoke a debtor's discharge under §§727, 1141, 1228, or 1328 of the Bankruptcy Code shall be dismissed except on motion and hearing after a 20-day notice to the Debtor, the United States Trustee, the trustee, and all creditors and other parties of record. The motion shall either (1) state that no entity has promised, has given, or has received directly or indirectly any consideration to obtain or allow such dismissal; or, (2) shall specifically describe any such consideration promised, given, or received. In addition to normal notice requirements, this notice must include a statement to the effect that any creditors or the trustee who wish to adopt and prosecute the adversary proceeding in question shall seek leave to do so at or before the hearing on motion to dismiss. Nothing contained herein is intended to restrict the discretion of the judge to limit such notice to the Debtor, the United States trustee, the trustee and such creditors or other parties as the judge may designate, or to shorten the notice period for cause shown.
Committee Note: Proceedings to bar or revoke discharge are brought for benefit of the estate and all creditors. If a party in interest withholds its own action in reliance upon a timely action by another, it should have an opportunity on notice to take up the burden of litigation if the initial party drops the matter for any reason. The notice of consideration given for dropping the case is appropriate, so the court and parties can determine whether such consideration belongs to the estate; e.g., an action brought to bar discharge for hiding of estate assets should not result in the hidden assets going to the party bringing the action instead of to the estate. Under 11 U.S.C. §506(c), benefits to the estate from such an action can be rewarded appropriately.