Can the Court Revoke a Chapter 7 Bankruptcy Discharge? What You Need to Know
When your Chapter 7 bankruptcy is discharged, it's natural to assume your fresh start has begun. But the courts can revoke a bankruptcy discharge, leaving you to pay back those debts. We'll look at why that happens and what you can do to prevent it.
The Craig Black Law Firm has extensive experience with Chapter 7 bankruptcy cases. But what sets our firm apart is our personalized approach. When you call 678-888-1778, I will pick up the phone and answer your questions. You can also reach me by completing this confidential contact form.
Reasons for Chapter 7 Revocation
Fraud is at the heart of most bankruptcy discharge revocations. Whether an error was intentional or not, though, the court can revoke your bankruptcy discharge with little recourse available on your end.
Here are some common reasons Chapter 7 bankruptcies are revoked:
- The court grants it as a request from the trustee or a creditor
- The U.S. trustee requests it if the debtor received the discharge through fraud
- You knowingly and fraudulently fail to report or surrender property you acquired; if you do learn that you own property you didn't disclose, you must contact your lawyer immediately and amend the payment schedules
- You made a material misstatement in your bankruptcy filing
- You fail to provide the requested documents during an audit of your case
Preventing Chapter 7 Revocation
Revocation prevention starts when you file for bankruptcy. You must be upfront and honest when completing the paperwork. Take extra care to list every asset and liability, and if the court requests documentation at any point, provide it immediately.
But even if you've already filed, you can do some things to reduce your risk of a revocation. That starts with responding to any requests from the trustee or the courts. If you learn of property you didn't disclose initially, reach out to the trustee immediately.
Dealing with a Revocation
In most cases, a revocation must be requested within one year of the discharge. The court will review the information and make the ultimate decision as to whether a revocation is merited.
If your bankruptcy discharge is revoked, you'll be responsible for repaying all debts as they cannon be discharged. In more severe fraud cases, you may also be responsible for fines and face potential criminal charges.
How the Craig Black Law Firm Can Help
An attorney can be a big help in reducing your risk of revocation. This starts with the initial paperwork and continues throughout your bankruptcy, whether you're responding to trustee requests or you've discovered an asset you forgot to list. Once a revocation has been requested, an attorney can also help you navigate the process.
The Craig Black Law Firm specializes in Chapter 7 bankruptcy. We can guide you through completing the paperwork to ensure you don't miss anything. No matter where you are in the bankruptcy filing process, give me a call at 678-888-1778 or complete this confidential form.