Texas Bankruptcy Lawyers - "Can a bankruptcy discharge be revoked?"

Any discharge can be revoked within one year of final court approval. The basis for revocation is limited to specific reasons provided within the code. Revocation may be instigated by a lawyer who files a motion to reopen closed cases and re-argue discharge issues.

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A trustee, creditor, creditor lawyer, or the US trustee may request revocation in a Chapter 7 case if the debtor obtained the discharge fraudulently; or the debtor failed to disclose property acquisitions that would have become property of the bankruptcy estate; or the debtor acted willfully, intentionally, or maliciously deceiving a party in interest. To revoke a bankruptcy discharge, an interested party or their lawyer may file a motion requesting the court reopen the case subject to a statutory period of limitation. Based upon notice and a hearing, the court reviews the basis of the request and must deny reopening unless the objecting party or lawyer carries the burden of proof. Admissible proof, according to the Federal Rules of Evidence is required, and the objecting party must prove, more likely than not, that discharge was improper. The most common reason for revocation is a fraudulent misrepresentation of material facts.

All debtors and their attorneys have questions about current laws. Board certified consumer bankruptcy specialists in Texas refer to the Code regularly, as well as review slip opinions of new case decisions as they become available. The process is organic, in that the law, benefits, rights and duties of debtors changes in response to the current political environment, and in turn, require a constantly changing approach in court to gain favor. Also be aware, each debtor and their attorney are responsible for legal compliance with all Texas bankruptcy laws regardless of actual knowledge of recent changes. For this reason, debtors filing pro se seldom achieve the results as favorable as debtors who are represented by a qualified consumer specialists who is familiar with current changes and requirements.

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