Why should I file a Preemptive Bankruptcy?

The following are situations in which someone might want to consider bankruptcy as an option when faced with litigation where:
• the outcome is not likely to be favorable;
• the cost of defense is crippling;
• the possibility of a judgment in excess of the Chapter 13 debt limits; or
• findings of fraud are likely.
Waiting until the end of the litigation may be too late for relief in bankruptcy from adverse consequences.  However, as with all such matters, consulting a Bankruptcy Attorney early in the process is the best idea. More information on Utah Bankruptcy can be found at www.dlblaw.com

 

CAN A BANRUPTCY DISCHARGE BE REVOKED?

A discharge may be revoked under certain circumstances. For instance, a trustee, creditor, or the United States trustee may request that the court revoke the debtor’s discharge in a chapter 7 case based on:

• Allegations that the debtor obtained the discharge fraudulently;
• the debtor failed to disclose the fact that he or she acquired or became entitled to acquire property that would constitute property of the bankruptcy estate or;
• the debtor committed one of several acts of impropriety described in section 727(a)(6) of the Bankruptcy Code.

Usually, a request to revoke the discharge must be filed within one year after the granting of the discharge or, in some cases, before the date that the case is closed. It is up to the court to determine whether such allegations are true and, if so, to revoke the discharge.

In a chapter 13 case, if confirmation of a plan or the discharge is obtained through fraud, the court can revoke the order of confirmation or discharge.