Once you obtain your discharge order, can you finally breathe a sigh of relief? In the vast majority of the cases, the answer is “yes.” However, there is a small area where a creditor or the trustee can seek to have your discharge revoked. This complaint must be based on the ground of fraud in your filing and it must be lodged within a year of your discharge date.
What does this mean? In order to have a discharge order revoked, it must be proven that you violated the law in obtaining your discharge of debt. This means that there must be evidence that you failed to disclose property that should have been included in your filing, you failed to comply with court orders, or you committed fraud in obtaining your discharge. The court will hold a hearing and determine whether or not the allegations are valid and if the discharge should be revoked. If the discharge order is revoked, it will be as if you never filed bankruptcy and you remain liable for all of your debt. If any portion of your debt was paid through your bankruptcy case, you will get credit for those payments.
It is important to understand that it is very rare for a discharge order to be revoked, but it is important that you are open and honest in your filing. If there are issues regarding your finances or you have other concerns, it is important to confer with us before your case is filed. We can review your individual situation and create a strategy to address the issues and ensure that you successfully discharge your debt.
We are bankruptcy lawyers who know how to make a difference in your financial situation. We have experience you can rely on and we care about your results. Contact our New Jersey law firm online by filling out the form or by calling 973-323-2953 to schedule a free initial consultation with an attorney at Levitt & Slafkes, P.C..