Illinois 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. The procedural mechanism for revocation begins when most often when bankruptcy lawyers representing creditors file motions to re-open a case for review.

Illinois Bankruptcy Lawyers - In Practice

A trustee, creditor, the US trustee, or bankruptcy lawyers representing a bona fide party in interest may request revocation in a Chapter 7 case if the debtor or their bankruptcy lawyer obtained the discharge fraudulently; or the debtor or their bankruptcy lawyer failed to disclose property acquisitions that would have become property of the bankruptcy estate; or the debtor or their bankruptcy lawyer acted willfully, intentionally, or maliciously deceiving a party in interest. Based upon notice and a hearing, the court reviews the basis of the request and must deny reopening unless the objecting party 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.

Requirements for discharge and confirmation are complex. Bankruptcy lawyers must carefully construct a financial history for each client before recommending any course of action. Because financial histories are unique, available options under the Code vary. Also, bankruptcy lawyers frequently arrive at different conclusions regarding available options, based on each bankruptcy lawyer's level of experience and expertise. All debtors who have questions regarding discharge and confirmation through the Illinois federal court system should compare the advice of several bankruptcy lawyers to establish the range of options available.

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