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What Is a Bankruptcy Discharge Revocation?

Posted on : November 15, 2020, By:  Grace Chang

Have you filed for bankruptcy and received a full or partial discharge of your debts? This can be a great relief, however, it may not be permanent. In some cases, the bankruptcy court that awarded your discharge can revoke it, meaning you’ll have to make payments on your debts again. Here’s the facts about bankruptcy discharge revocation and how an experienced attorney can assist you. 

When Can a Discharge Be Revoked?

When you are granted a discharge in a bankruptcy, you no longer have to pay the bills that were included in the discharge. This can be extremely helpful in regaining your financial footing. However, if the court finds evidence of misrepresentation or fraud, your discharge may be revoked. Your creditors or the trustee overseeing your bankruptcy case can file a motion for a revocation of your bankruptcy discharge. In most cases, a revocation can only be requested within a year of the discharge date or case closure. 

Revoking a Discharge Under Chapter 7 

After being awarded a Chapter 7 bankruptcy discharge, there are some circumstances under which it can be rescinded, such as: 

  • You were found to have made fraudulent statements on your bankruptcy application 
  • You made a material misstatement that you cannot adequately explain as a mistake to the bankruptcy court 
  • Your nonexempt assets were willfully misrepresented or you knowingly failed to disclose them 
  • You underwent a bankruptcy audit but did not provide adequate supporting documentation 
  • You were ordered by the court to furnish records and you refused to comply 

Revoking a Discharge Under Chapter 13 

It’s often less difficult for a bankruptcy trustee or creditor to request that a discharge be revoked for a Chapter 13 bankruptcy, because the burden of proof tends to be lower. The only evidence that must be shown for a court to grant the revocation request is that the individual accused has committed fraud on their Chapter 13 application with the express purpose of getting their debts discharged and that the trustee or creditor remained unaware of the fraud until much later, once the discharge was already granted. 

When to Speak With a Bankruptcy Lawyer 

Are you struggling under what seems to be insurmountable debt or are looking at the possibility of having an awarded discharge rescinded? Does it feel like no matter how many payments you make, you just can’t get ahead? Grace Lea Chang can assist you. Call for your consultation today at (626) 792-5888.