If you’ve filed for bankruptcy, you’ve likely been waiting for the relief associated with the successful completion of it. A major benefit of filing for bankruptcy involves receiving a “discharge” status on some of your debts. When a debt is discharged, you are no longer legally obligated to pay the debt. Your eligibility for discharge status and the creditors’ ability to revoke it depends upon your individual bankruptcy case and the type of bankruptcy you have filed.
If you employ the help of a Minneapolis bankruptcy attorney, your lawyer will review your paperwork. This will reduce the chances of a revoked discharge status on a debt. If a creditor does challenge a discharged debt, your Minneapolis bankruptcy law expert can represent you in an effort to protest the revocation.
Why Can My Discharge Be Revoked?
Proof of bankruptcy fraud automatically disqualifies you from receiving discharged debt status. Common bankruptcy fraud occurs due to transferred or unreported assets or because the debtor provided false information on the bankruptcy form. If you suddenly inherit a significant amount of property or other assets, you are obligated to report it to the court. The court may re-assess your bankruptcy case and determine that some debts can no longer maintain discharged status.
Who Could Revoke My Discharged Debt?
Several legal parties involved have the ability to revoke discharged debt. Creditors are permitted to provide evidence of hidden or falsified information to the court. The decision for revocation of discharged debt can come from the U.S. trustee, creditor, or trustee. Each of these parties has a vested interest or obligation to keep current on your affairs during bankruptcy proceedings.
Is There a Time Limit?
Depending on type of bankruptcy filed, the individual case and local law, discharged debts cannot be revoked after either the closing of the case or one year following the closing of your bankruptcy case.
Creditors and Discharged Debt
While creditors may petition for the revocation of discharged debt, they are unable to legally collect from you until the court has granted permission for them to make arrangements. Even then, the creditors must act in accordance with bankruptcy law and come to a reasonable agreement on repayment. Harassing mail, phone calls, messages and personal appearances from creditors are still illegal. Report any collection attempts to your Minneapolis bankruptcy lawyer as soon as possible.
To avoid disappointment and mismanagement of funds, research the time limits on revocation of discharged debts for your case (your lawyer should be able to provide assistance). Once you’ve cleared the time frame, you are able to proceed with a more definite repayment plan and a fresh financial start.