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Consequences of a Revoked Bankruptcy Discharge

The ultimate goal of a Chapter 7 bankruptcy filing is to discharge or eliminate debt. Chapter 13 bankruptcy is designed to create a reasonable repayment plan of the debt owed. So erasing debt is customarily done through Chapter 7.

But even if a discharge of debt through Chapter 7 has been given, it can still be revoked. Furthermore, if it is determined that a Chapter 13 payment plan is obtained under false pretenses, the court can cancel this type of claim as well.

If you are considering filing bankruptcy, it's important to take the proper steps to ensure you are protected by the court.

When a Discharge is Revoked

There are certain circumstances when a discharge is revoked. A trustee or a creditor may ask the court to revoke a discharge if fraud is suspected. A granted bankruptcy discharge could also be revoked if the court discovers that the debtor failed to disclose the ownership of property.

In addition to fraud or dishonesty about certain assets, a discharge can also be withdrawn if the debtor committed an act of impropriety, including:

  • Failure to obey a lawful court order
  • Refusal to respond to a material question approved by the court or to testify on grounds of protection against self-incrimination if the court grants immunity
  • Refusal to respond to a material question approved by the court or to testify on a ground other than self-incrimination

Deadline for Revoking Discharge

In general, a request to revoke a debtor's discharge should be filed within a year after the claim has been granted. Then the court will decide if the allegations involved are true or not. If the court agrees with the trustee or creditor, the discharge will be removed.

What Happens Next

If a court revokes your discharge, that means you are responsible for the debt again. Furthermore, you may also face fines and imprisonment as a result of not being honest about your assets or committing some form of fraud related to your bankruptcy case.

This is why it is so important to make sure to provide a complete and accurate list of all of your property and possessions. Actively hiding or misleading the court in a bankruptcy filing can lead to serious problems with your claim.

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If you would like more information about how to safeguard against the revoking of a bankruptcy discharge, fill out the form below to be connected with a bankruptcy lawyer near you today.

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