What If a Judge Revokes Your Bankruptcy Discharge?

iStock_000014217415_LargeMost people that file for Chapter 7 bankruptcy or Chapter 13 bankruptcy do so for the bankruptcy discharge. The bankruptcy discharge can offer you a fresh financial start. Most, if not all of your outstanding unsecured debt will be completely erased after your bankruptcy case is resolved, allowing you to begin anew.

However, if you are not entirely truthful, or commit bankruptcy fraud before, during, or even after your bankruptcy, your discharge could be thrown out.

Why Would My Bankruptcy Discharge Be Denied?

Your bankruptcy discharge may be revoked if:

  • You committed bankruptcy fraud, and it wasn’t discovered until after your case had closed.
  • You disobeyed court rules or orders.
  • You attempted to hide or refused to surrender assets that should have gone to the bankruptcy estate.
  • You lied on official forms, or did not complete them.

Generally, there are only three parties that can ask that your bankruptcy discharge be revoked; the bankruptcy trustee, the U.S. trustee, and your creditors.

What Happens If the Court Revokes Your Bankruptcy Discharge?

If your bankruptcy discharge is revoked, you could be looking at some serious consequences, including:

  • You will continue to be liable for your unpaid debts even after you’ve file bankruptcy. This means that creditors will still be harassing you, and potentially repossessing your assets.
  • You could also be slapped with hefty fines.
  • You may be criminally prosecuted for bankruptcy fraud.

What Can I Do to Avoid Having My Bankruptcy Discharge Revoked?

Usually, the best solution is to consult a bankruptcy attorney. Going through bankruptcy can often be complicated, and confusing. The law is not always easy to understand, and many people have been accused of fraud out of misunderstanding.

Hire a bankruptcy attorney so that they can help explain everything to you so that you understand, and to help you find the best solutions for your unique situation.

Washington D.C. bankruptcy attorney Kevin D. Judd has been helping people throughout the D.C./Maryland area find the best solutions to their own financial problems for years, and is proud to have helped them achieve their goal of becoming free from financial burden.



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