Filing for bankruptcy requires honesty and transparency in the reporting of assets and debts on the part of the filers. But some consumers who file under Chapters 13 or 7 are less than honest with their declarations.
When this happens, the trustees or creditors can approach the courts and request a revocation of the discharge of debts. Obviously, this is not a welcome development. Learn more below to see how you can avoid such complications.
What triggers debt discharge revocations?
It depends on the debtors’ circumstances, but below are some situations where filers could be at risk of debt discharge revocations:
- Fraud on the part of the bankruptcy filer
- Any violations of section 727(a)(6) of the U.S. Bankruptcy Code
- Retaining valuable and undisclosed assets
- When facing an audit, being uncooperative and misrepresenting facts
Revocations of debt discharges are serious consequences for those who are not forthright with the trustees or creditors.
How long is the period for revocation of debt discharges?
Both trustees and creditors have one year from the discharge of debts to file for a revocation of the discharge. That’s a long time to worry about your old debts coming back to nip at your heels.
Are you facing dire financial straits?
If you are struggling under a crippling mountain of debt, now is the perfect time to clear the slate with a Chapter 7 bankruptcy filing. Not sure if you can pass the means test to file under Chapter 7? Filing under Chapter 13 is another option to consider when attempting to get your fiscal house in order.