Can my bankruptcy discharge be revoked?

21 Apr Can my bankruptcy discharge be revoked?

The Bankruptcy Code (11 U.S.C. Section 727(12(e)) permits an interested party to seek revocation of a debtor’s discharge if it can be shown that the debtor obtained the discharge by fraud and that fraud was not known to the requesting party until after the discharge was granted. It is not sufficient to show that the debtor’s fraud rendered a specific debt nondischargeable to obtain revocation of a debtor’s discharge for fraud. The plaintiff must show that the bankruptcy discharge itself would not have been granted but for the fraud.The complaint must also allege fraud with particularity, including the time, place and contents of any false misrepresentation, as well as its consequences. The complaint seeking revocation of discharge must be filed within one year after the discharge was granted, but additional time may be allowed, depending upon the reason for the revocation, if the case is not closed until after the one-year period has passed.

A creditor or trustee may also move to revoke a Chapter 13 discharge within one year of when it was granted if the discharge was obtained by fraud and that fraud was not known by the requesting party until after the discharge was granted. (11 U.S.C. Section 1328(e)).

An interested party includes creditors, equity security holders and insiders.

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Jay S. Fleischman is a bankruptcy lawyer with offices in Los Angeles and New York. He can often be found on Google+ and Twitter, where he shares information about consumer protection issues and personal finance.
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