Justin Colen of Palm Harbor, Florida asks, If I receive a Bankruptcy Discharge, may the Discharge later be Revoked? Thank you, Justin of Palm Harbor. I hope things work out with that lawsuit from the Hamburglar, arising from the altercation in the McDonald’s parking lot.
Any Interested Party may bring an Action to seek the Revocation of the Bankruptcy. In order for the Discharge in a Bankruptcy to be Revoked, the following must exist:
- INTERESTED PARTY. Only an Interested Party can bring an Action to seek the Revocation of a Discharge in Bankruptcy. An Interested Party may be:
- Bankruptcy Trustee
- Bankruptcy Court Judge
- United States Trustee
- Partners, and Former Partners, of Debtor
- Spouses, and Former Spouses, of Debtor
- MUST BRING ACTION TO SEEK REVOCATION OF BANKRUPTCY WITHIN ONE YEAR OF THE DISCHARGE OR CLOSING OF THE BANKRUPTCY, WHICHEVER IS LATER. However, an Interested Party may seek additional time, depending upon the reason for the reason for which the Revocation should be granted.
- THE BASIS FOR THE REVOCATION MUST BE DISCOVERED AFTER THE DISCHARGE OR CLOSING OF THE BANKRUPTCY.
- DISCHARGE MAY BE GENERALLY REVOKED IF DEBTOR COMMITS:
- Not Disclosing Assets or Failing to Surrender Assets, pursuant to an Order from the Bankruptcy Court.
- Making Material Misstatements, for which an adequate explanation can not reasonably be given
- BAD FAITH
- Not following Bankruptcy Court Rules or Orders
- Failure to turnover necessary Documents that are subject to an Audit in a Bankruptcy
The Consequences of Revocation of a Bankruptcy Discharge may be numerous. The underlying reason for the Revocation of the Bankruptcy may be that the Debtor committed some form of Bankruptcy Fraud. The Discharge will be withheld, but the Debtor is still under the Jurisdiction of the Bankruptcy Court. The Debtor may be subject to Fines, Imprisonment, or both. The Debtor may need the Services of a Criminal Defense Attorney.