Can my bankruptcy discharge be revoked?
- Yes, it’s possible that your bankruptcy discharge be revoked – but only if you have been less than honest during and after the bankruptcy process
A revoked discharge is not the same thing as a denied discharge – a debtor can only be denied a discharge while the bankruptcy is pending.
Remember, in a Chapter 7 Bankruptcy it takes around 3 months to get your discharge, and in Chapter 13 Bankruptcy it takes 3 to 5 years to get your discharge.
The discharge is the court order that states you no longer owe the debts, and is the end goal of filing the bankruptcy.
Who can revoke a bankruptcy?
- The bankruptcy trustee
- A creditor
- The US Department of Justice
Can ask that a bankruptcy discharge be revoked.
WHEN CAN A BANKRUPTCY DISCHARGE BE REVOKED?
They can only do this within one year after the discharge is granted, or the case is closed.
In addition, the party requesting that the bankruptcy discharge be revoked must not have been aware of the situation calling for the revocation at the time that the discharge was granted.
WHY CAN A BANKRUPTCY DISCHARGE BE REVOKED?
A common example would be:
- If the debtor got an inheritance in the 180 days after filing the bankruptcy, but didn’t report the inheritance to the trustee
Failing to report the inheritance would be grounds for revocation of the discharge.
The court may state that a bankruptcy discharge be revoked after a hearing because the debtor:
- Committed fraud
- Concealed property
- Failed to comply with a court order
- Couldn’t explain the loss of assets
A discharge can also be revoked if the debtor:
- Doesn’t provide satisfactory financial information to the trustee,
- Fails to provide necessary documents
What is a typical reason for a bankruptcy to be revoked?
For example, let’s say you sell you car prior to filing for bankruptcy.
- Don’t have any of the money left
- Can’t produce receipts showing how you spent it
Then that could be grounds for denial of discharge.
WHAT HAPPENS IF MY BANKRUPTCY DISCHARGE IS REVOKED?
If your bankruptcy discharge is revoked, then:
- None of your debts are discharged and you still owe them
- They will all continue to accrue interest
- You may get judgments against you
You can still try to file a later bankruptcy and discharge the debts.
- You cannot, however, file the bankruptcy immediately
You must wait the necessary amount of time before filing another case in order to be eligible for a discharge, which can take up to 8 years.
It is interesting to note, however, that a denial of discharge is different.
- If your discharge is denied, then the debts are never dischargeable in any bankruptcy
This is a very dangerous penalty.
As an experienced Minnesota bankruptcy attorney I consider it my job to make sure that your discharge is not revoked.
I follow up with you where necessary to make sure that every step is carried out and that you get your bankruptcy discharge.
Need my help? Call 612.824.4357 now.