It’s unfortunate but there are still some debtors who have failed to be honest in their dealings with the bankruptcy system. Some debtors hide assets such as cash, property and inheritances putting their bankruptcy case in jeopardy, even after they receive a discharge.

When a Bankruptcy Discharge Can Be Revoked by Fraud

According to the bankruptcy law, a debtor’s bankruptcy discharge can be revoked if it is proved that the debtor received a discharge by fraud. A bankruptcy discharge revocation because of fraud is time-barred. If someone, such as a creditor or trustee wants to charge a debtor with fraud it must be done within one year after the bankruptcy discharge was granted with few exceptions. Bankruptcy discharges can be revoked in both Chapter 7 Bankruptcy and Chapter 13 Bankruptcy .

The plaintiff challenging the debtor’s discharge must not only prove that there was fraud on the debtor’s part but that it was the fraud that made the bankruptcy discharge possible. In other words, if the fraudulent activity did not take place, the debtor would not have received a bankruptcy discharge. The easy way to avoid your bankruptcy discharge from being revoked is to be honest with your bankruptcy attorney. There is absolutely no need to hide assets in a bankruptcy because there are so many generous exemptions under Texas’ bankruptcy law. Speak with a bankruptcy attorney about how Texas bankruptcy exemptions can protect your assets. If you would like to set up a free consultation you can call us or fill out our contact form .