Being honest during your
bankruptcy can make the filing process easier to complete with increased chances
of getting the outcome you want. For many debtors this includes bankruptcy
discharge, eliminating or wiping out debt. You may think things are complete
upon being granted a discharge of debts, but if you were not honest during
proceedings your discharge can be revoked; meaning, you can once again
be responsible for paying it.
There are reasons why a discharge can be revoked by the bankruptcy court.
A discharge permanently stops collection attempts and harassment for debt
owed to the creditor and it is considered a powerful injunction awarded
by the court. Committing fraud, acquiring property after your case is
completed without mentioning it prior to your case ending, refusing to
obey court orders or failing to provide sufficient evidence during audit
can be grounds for revoking a discharge in
Chapter 7 bankruptcy.
The same is similar in
Chapter 13 bankruptcy, except only a trustee, creditor or the United States trustee places a
request to revoke a discharge in Chapter 7. In Chapter 13 a discharge
can be revoked within a year if fraud is detected. Bankruptcy is a powerful
financial tool that can help you regain financial control. When debtors
are not truthful in the presence of the court this puts benefits of filing
in jeopardy. Being dishonest can lead to federal criminal charges. Any
questions or concerns about your case should be discussed with your bankruptcy attorney.