Can Bankruptcy Discharges Be Revoked?

Bankruptcy discharges are where debtors’ debts have been forgiven or eliminated.  When this occurs, the creditors cannot come after a debtor for the debts that have been discharged or eliminated.  However, there are some instances where a previously granted bankruptcy discharged is revoked, thereby allowing the creditors to again pursue the debtor for the debts that are owed.

Circumstances in which a Bankruptcy Discharge Can Be Revoked

A bankruptcy discharge can be revoked if a creditor can prove that the debtor received a bankruptcy discharge by fraud.  This normally has to be done within 1 year after the bankruptcy discharge has been granted by the court.  Both Chapter 7 and Chapter 13 bankruptcy discharges can be revoked.

It is not as easy to prove that a debtor received a bankruptcy discharge by fraud as it may sound.  A creditor must prove that the debtor not only committed fraud, but it was that fraud that allowed him/her to receive the bankruptcy discharge in the first place.

How to Avoid the Revocation of a Bankruptcy Discharge

To avoid the possibility of a revocation of a bankruptcy discharge, you cannot commit any type of fraud in your bankruptcy court case.  This includes being honest with your bankruptcy attorney, being honest in all of the documents and records that you submit to the court, and being honest in all of the testimony that you provide to the court. 

Obtaining Legal Help

Receiving a bankruptcy discharge can be a great help to someone who is in financial ruin, but if you are suspected of committing fraud to receive that discharge, it could lead to your creditors coming after you again.  An established and experienced bankruptcy attorney will know the federal and state bankruptcy laws that apply to your case and will present the strongest possible argument to ensure that your rights are represented under the law, that the accusations of committing fraud to obtain the bankruptcy discharge are false, and that your discharge is upheld.