CAN A CREDITOR PREVENT A DISCHARGE?

Under limited circumstances, a creditor may be able to block a bankruptcy discharge of his debt. For example, if a creditor can prove that he gave a loan in reasonable reliance on a financial statement which was false in important details and given with the intent to deceive him, he may avoid having the debt discharged. If a creditor tries to avoid the discharge for this reason and fails, the bankruptcy judge may order the creditor to pay for the debtor’s attorney fees and costs in defending the action.
These are just examples of problems that may occasionally arise in a bankruptcy proceeding. They are among the many matters which you should discuss in detail with your attorney. Looking for a Utah bankruptcy lawyer?  Click HERE.

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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.