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The Bankruptcy Discharge: Why It Is Important to Be Honest During Filing Procedures

Posted By Allmand Law Firm, PLLC || 28-Feb-2014


Being honest during your bankruptcy can make the filing process easier to complete with increased chances of getting the outcome you want. For many debtors this includes bankruptcy discharge, eliminating or wiping out debt. You may think things are complete upon being granted a discharge of debts, but if you were not honest during proceedings your discharge can be revoked; meaning, you can once again be responsible for paying it.

There are reasons why a discharge can be revoked by the bankruptcy court. A discharge permanently stops collection attempts and harassment for debt owed to the creditor and it is considered a powerful injunction awarded by the court. Committing fraud, acquiring property after your case is completed without mentioning it prior to your case ending, refusing to obey court orders or failing to provide sufficient evidence during audit can be grounds for revoking a discharge in Chapter 7 bankruptcy.

The same is similar in Chapter 13 bankruptcy, except only a trustee, creditor or the United States trustee places a request to revoke a discharge in Chapter 7. In Chapter 13 a discharge can be revoked within a year if fraud is detected. Bankruptcy is a powerful financial tool that can help you regain financial control. When debtors are not truthful in the presence of the court this puts benefits of filing in jeopardy. Being dishonest can lead to federal criminal charges. Any questions or concerns about your case should be discussed with your bankruptcy attorney.


Categories: Bankruptcy
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