Consequences of a Revoked Bankruptcy Discharge - Total Bankruptcy
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Consequences of Revoked Bankruptcy Discharge

When a bankruptcy filer receives a bankruptcy discharge, the case is officially over; however, in some circumstances, the court has the right to revoke a bankruptcy discharge. The consequences of a revoked bankruptcy discharge can be serious.

If you are in danger of having your bankruptcy discharge revoked, you may want to consult with a bankruptcy lawyer, which you can do by filling out this free form.

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Reasons a Bankruptcy Discharge Might Be Revoked

A court could potentially revoke a bankruptcy discharge for any of the following:

  • Bankruptcy fraud on the part of the debtor;
  • Debtor's failure to disclose assets that could have been part of the bankruptcy estate;
  • Debtor's failure to adhere to certain rules and requirements in the Bankruptcy Code;
  • Debtor's failure to explain incorrect information in bankruptcy schedules; or
  • Debtor's failure to provide requested documentation as part of a bankruptcy audit.

As this list suggests, bankruptcy law is complex and important to follow for anyone interested in receiving the court's full protection. The federal government strongly recommends that filers work with a bankruptcy lawyer to avoid having a discharge revoked.

Consequences of Having a Bankruptcy Discharge Revoked

So what happens after a discharge is revoked? The discharge is what forgives debts (in other words, if a debt is discharged, the debtor is no longer legally responsible for paying it). A revoked discharge, then, would mean:

  • The bankruptcy filer is still responsible for the debts discharged by bankruptcy. This may prove financially disastrous for some filers; after all, inability to pay was likely why they filed for bankruptcy in the first place.
  • The bankruptcy filer may face legal consequences. If the discharge was revoked because of bankruptcy fraud, the bankruptcy filer could face penalties, including a fine and even jail time.

Again, bankruptcy is a legally complex process and can have an enormous impact on a filer's post-bankruptcy life. Because of these factors (and the potential for punishment if the debtor is responsible for any errors), most experts (including the U.S. government) recommend that bankruptcy filers work with a lawyer.

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