Anyone who has filed for bankruptcy knows how harrowing it can be to wait for the financial relief associated with the successful completion of it . A major benefit of filing for bankruptcy involves the ability to receive a “discharge” of some or all of your debts . Upon the discharge of a debt , you are no longer required to remit payment . Your eligibility for a discharge and the ability of your lender to revoke that decision depends entirely upon your individual bankruptcy case and the type of bankruptcy you have filed .
If you hire a Minneapolis bankruptcy attorney, your lawyer will start by reviewing your filing documents . Doing so will reduce the odds of a revoked discharge status on a debt . If a lender challenges a discharge , your bankruptcy attorney will be able to help you fight the revocation .
For What Reasons are Discharges Revoked?
Proof of a fraudulent bankruptcy filing automatically disqualifies you from receiving any type of discharge . The most common bankruptcy fraud occurs due to assets that have been transferred are unreported or because the debtor gave inaccurage 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 consider reassessing your bankruptcy case and might rule that some of your previously discharged debts can no longer maintain discharged status.
Who Revokes a Discharge?
Several legal parties involved have the ability to revoke discharged debt . Creditors are permitted to provide evidence of hidden or falsified information to the bankruptcy court . The decision for revocation of discharged debt will only come from the U.S. trustee, creditor, or trustee. These are the only parties that have a vested interest in your affairs during bankruptcy proceedings.
What is the Time Limit?
Depending on type of bankruptcy filed, the individual case and local law , debts that have been discharged may not be revoked after either the case is closed or one year following the closing of your file .
Creditors and Discharged Debt
Even though your creditors may try to file for the revocation of your discharge , they are unable to attempt collection from you until the court has let them know that it is ok for them to make arrangements for payment . Even then , the creditors must follow all bankruptcy laws and come to a reasonable agreement on repayment. Harassing mail , multiple phone calls , messages and surprise appearances from lenders remain illegal. Keep track of and report any attempts to collect payment to your Minneapolis bankruptcy attorney as soon as possible .
To avoid disappointment and mismanagement of funds, research the time limits surrounding the revocation of discharged debts for your bankruptcy (your attorney should be able to aid you in locating this information ). Once you’ve cleared the time frame , you are able to create a resonable budget and enjoy a fresh financial start. Understanding bankruptcy facts is imperative to your success.
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