In most cases, debtors will ask the court to reopen their bankruptcy case after receiving a discharge if they realize that they made a mistake on the petition (such as forgetting to list an asset) or if they need the court's assistance. Most debtors will ask the court to reopen their bankruptcy if they:
Full Answer
Your bankruptcy case is not over when you get a discharge, but when the court closes it with a final decree or order. Most debtors file for bankruptcy relief to discharge (wipe out) their debts. But your bankruptcy doesn’t end when you receive your discharge.
Here are six ways to lose your bankruptcy discharge: 1. Attempt to Defraud 2. Concealing or Destroying Information 3. Lying 4. Loss of assets 5. Refusal to comply with court order 6. Failure to take instructional course The key to a successful discharge? Your bankruptcy attorney 1. Attempt to Defraud
You can sell your house after your bankruptcy discharge. However, you must re-invest the proceeds in another home within six months. Otherwise, the trustee can sell your house and pay your creditors. Consult an attorney as to the specific facts of your case.
In Chapter 7 bankruptcy, you normally receive a discharge a few months after filing your case. If you filed for Chapter 13 bankruptcy, you typically have to complete your Chapter 13 repayment plan before the court will grant you a discharge. (To learn more, see The Bankruptcy Discharge .)
Filing a Petition to Revoke a Discharge Only an interested party can file a revocation petition with the bankruptcy court. That means the petition can be filed by the bankruptcy trustee, a creditor, or the United States Trustee. There are time limits within which a revocation petition must be filed.
To object to the debtor's discharge, a creditor must file a complaint in the bankruptcy court before the deadline set out in the notice. Filing a complaint starts a lawsuit referred to in bankruptcy as an "adversary proceeding."
A chapter 7 bankruptcy case can be reopened after discharge and case closure under certain circumstances. Bankruptcy Code §350(b) authorizes the bankruptcy court to reopen a case for various reasons, including to "administer assets, to accord relief to the debtor, or for other cause." Fed.
Your Home and the Chapter 7 Bankruptcy Trustee The trustee will sell property in the estate for the benefit of creditors. However, you don't lose everything you own. You can "exempt" or remove property from the estate your state determined is reasonably necessary to maintain a home and employment.
If the court grants an objection to discharge, the debtor remains liable on every debt, as if the bankruptcy had not been filed. When an objection to dischargability is granted, only the particular debt at issue carries through after the bankruptcy as a personal liability of the debtor.
The Trustee's Final Report Once all assets have been liquidated, and claims paid, the trustee will file a Final Report with the court. Unless any party objects to the final report, the court will issue a final decree, and the clerk of the court will close the case.
If you haven't yet reached the end of your bankruptcy, you can simply file a form with the bankruptcy court to add the missing creditor. If you've already reached discharge and receive a collection notice from a creditor that was left out of your bankruptcy, contact your bankruptcy attorney immediately.
Thus, where a creditor has the ability to change the credit report, the best practice is to change the reporting upon discharge or, at the latest, as soon as the creditor receives such a request from the debtor by either deleting the debt or specifically reporting the debt as discharged in bankruptcy.
The bankruptcy is reported in the public records section of your credit report. Both the bankruptcy and the accounts included in the bankruptcy should indicate they are discharged once the bankruptcy has been completed. To verify this, the first step is to get a copy of your personal credit report.
While your trustee will most likely periodically check all of your financial accounts such as your bank accounts, in order to ensure that you have enough money to continue making your bankruptcy payments, they are not permitted to touch any of your funds, other than the funds which are allocated for your secured loan ...
Mortgage Payments After a Chapter 13 Plan The lien allows the lender to foreclose on your home if you miss a payment. Simply completing your Chapter 13 repayment plan and getting a discharge won't get rid of the first mortgage lender's lien on your home. Find out more about releasing a lien in bankruptcy.
about four to six monthsHow long can Chapter 7 trustee keep case open? A. The Chapter 7 trustee can keep the case open for about four to six months after filing the bankruptcy papers. However, this does not end with discharge, but with the court's final decree.
You can sell your house after your bankruptcy discharge. However, you must re-invest the proceeds in another home within six months. Otherwise, the trustee can sell your house and pay your creditors. Consult an attorney as to the specific facts of your case.
If you reaffirmed your house debt then the debt was not discharged. That is what reaffirmation means. So you are personally liable for the debt and have a lien against it. So you could sell the house if it was not underwater which it is probably not.
Discharge is not the same as case closing. I cannot tell you more without more information. It sounds as though you had to turn over your tax refunds. The case will not close until the trustee finishes administering the case. You might ask the trustee if he will abandon the house so you can sell it. Your lawyer should be helping you with this.
You should listen to your own attorney. And the discharge is not the closing of the bankruptcy. While discharge is the goal, the case remains open for a few years, until it is finally closed. There is a lien on the home, the mortgage you reaffirmed.
One common ground for denying a discharge is when the debtor — with intent to hinder, delay, or defraud a creditor — transfers, removes, destroys, mutilates, or conceals property within one year before the date of filing for bankruptcy or any time after the date of filing.
This means that you will still be liable on all of your debts, essentially leaving your bankruptcy ineffective. In addition, a discharge denial due to fraud still allows the trustee to administer non-exempt assets. This means that you could lose property to the trustee and still not receive debt relief. While such a finding is very serious, an open ...
This seems like a no-brainer, but if a debtor refuses to obey a lawful order of the court, they could be in trouble. And if your bankruptcy case is denied simply because you failed to comply with a simple court order, you’re going to keep getting those harassing creditor phone calls. Keep in mind that after a discharge, collectors who still call are violating federal law.
When you fail to complete an instructional course about personal financial management, you run the risk of getting your bankruptcy denied. Under U.S. Bankruptcy Code , two instructional courses must be taken. The first is a credit counseling requirement that must be fulfilled before you can begin your bankruptcy case. The second requirement is a financial management course that must be completed during your case and is a requirement for getting a discharge. Your attorney can advise you on the proper instructional course to take to meet this requirement, which could cost anywhere from $20 to $100, depending on where you file. Much cheaper than having your bankruptcy case denied and refiling all over again.
If you lie in connection with your case or make a false statement, your bankruptcy can be discharged. When you file for bankruptcy, you represent under penalty of perjury that everything contained in the filing is true and accurate. If it is later revealed that omissions were made, the trustee or a creditor can challenge your discharge. ...
Here are six ways to lose your bankruptcy discharge: 1. Attempt to Defraud. 2.
If you are not completely honest, you run the risk that a court may deny you your discharge. 2. Concealing or Destroying Information. Your bankruptcy also can be denied if you conceal, destroy, falsify, mutilate, or fail to keep information regarding your financial condition.
In contrast, if the debtor fails to meet those requirements, the court will not enter the discharge. Instead, the case is dismissed and closed.
For instance, in Chapter 7, the debtor has to file complete and accurate schedules, attend a Section 341 meeting of creditors, attend a financial management course, turnover nonexempt property, and a litany of other items.
When you choose to file a bankruptcy case, regardless of what type of bankruptcy you file under, there will be one of two outcomes— discharge or dismissal. Most people who file a bankruptcy case have one goal in mind, and that is to relieve financial stress by discharging their debts. When your debts are discharged, the ...
Failure to file the proper paperwork leads to many early dismissals. There are many pages of schedules and statements that lay out the debtor’s financial picture, including income, expenses, debts, assets, and previous financial transactions.
A Chapter 7 case consists of two distinct tracks. The first one concerns whether the debtor will get a discharge of debt. On the other track, the trustee administers property that can be sold to satisfy creditors. Whether there is property that can be sold depends on if the debtor has any non-exempt property.
Bankruptcy paperwork can be filed at the time the case is filed, or it can be filed within 14 days after the case is filed.
Generally, they are focused on a repayment plan that will dictate how much you have to pay each month, how many months the plan will last, and what debts must be paid through the program.
Yes, an individual’s home may be affected in a bankruptcy proceeding, depending on which chapter they choose. The two main types of bankruptcy are Chapter 7 and Chapter 13.
It may be possible for an individual to keep their home when they file for bankruptcy, but the situation must be right. The individual filing for bankruptcy must ensure that they meet the requirements for the chapter they choose to file.
There are many legal issues involved in bankruptcy proceedings. Issues that an individual should consider when filing for bankruptcy include:
In response to the COVID-19 pandemic, The Coronavirus Aid, Relief and Economic Security Act (CARES) was passed, which made some temporary amendments to the bankruptcy laws.
Yes, it is essential to have the assistance of a bankruptcy lawyer with any bankruptcy issues you may face, even if you are simply considering filing. Your lawyer can explain the different types of bankruptcies in further detail and advise you which best suits your situation.
When you receive a bankruptcy discharge, it wipes out your liability for all discharged debts. You will no longer be obligated to pay those debts, and creditors can't sue you personally to collect them. However, simply filing for bankruptcy does not automatically remove any liens that were placed on your property before filing your case.
However, even if the lawsuit resulted in a judgment, the bankruptcy will eliminate your liability as long as the debt qualifies for discharge. But keep in mind that if the judgment is for a nondischargeable debt, bankruptcy will not get rid of it (discussed below).
Just like in Chapter 7, deficiency judgments are treated as unsecured debts in Chapter 13 bankruptcy unless your lender placed a lien on any of your assets before filing. Your lender will only receive a pro-rata share of the amount going to your unsecured creditors through your Chapter 13 repayment plan. When you complete your Chapter 13 plan, the deficiency judgment will be discharged.
Bankruptcy Can Discharge Deficiency Judgments. Your mortgage lender typically has a lien on your house (your car lender has one on your car). If you default on the loan, the lender can sell your house through foreclosure or auction off your car after repossessing it.
If a creditor obtains a judgment against you for a nondischargeable obligation, filing for bankruptcy will not discharge that judgment. Some of the most common types of nondischargeable judgments include those related to or arising out of: death or injury caused by the debtor's drunk driving.
Filing for bankruptcy relief can wipe out your personal liability for a deficiency judgment. How the deficiency judgment will be treated in bankruptcy depends on whether you file for Chapter 7 or Chapter 13 bankruptcy.
Not all judgment liens can be removed through bankruptcy. Whether you'll be able to remove a judgment lien will depend on the value of the property, the amount of the lien and other encumbrances on the property, and your state's exemption laws.
Until the court closes your case, you have a duty to cooperate with the trustee. This means that you may still be required to: turn over nonexempt assets to the trustee. provide additional information or documentation. testify in a pending lawsuit, or. appear at a deposition or 2004 examination.
If the trustee or your creditors discover that you provided false information on your bankruptcy papers or didn't disclose all of your property, they can ask the court to reopen your case in order to administer those assets or even revoke your discharge. In some cases, you may also want to reopen your bankruptcy.
In Chapter 7 bankruptcy, you normally receive a discharge a few months after filing your case.
Do Not Sell My Personal Information. Most debtors file for bankruptcy relief to discharge (wipe out) their debts. But your bankruptcy doesn't end when you receive your discharge. Your case is not officially over until the court closes it by entering a final decree or order.
In some cases, you may also want to reopen your bankruptcy. For example, if you accidentally forgot to list a debt or if a creditor is violating your discharge, you might ask the court to reopen your case to address these issues.
Your Responsibilities Don't End When You Receive a Discharge. Just because you received a discharge doesn't mean that you have no more responsibilities in your bankruptcy. If you have a complex bankruptcy with ongoing lawsuits or appeals, your case might remain open for a long time after the court grants your discharge.
If you filed for Chapter 13 bankruptcy, you typically have to complete your Chapter 13 repayment plan before the court will grant you a discharge. (To learn more, see The Bankruptcy Discharge .) Even if you receive a discharge, your bankruptcy remains open until the court enters a final decree or order closing your case.
When you reaffirm your mortgage, you enter into a new agreement that supersedes your previous loan. A lender may require you to reaffirm the loan if you wish to keep your home. Reaffirming the mortgage creates an agreement that makes you personally liable for the debt, and excludes the mortgage from the bankruptcy discharge. Therefore, if you later find it impossible to make payments on your mortgage after signing a reaffirmation agreement, the lender may be able to file a lawsuit against you for any remaining balance owed after a foreclosure sale. Signing a reaffirmation agreement is, therefore, an important decision to weigh with serious consequences.#N#Read More: Can You Refuse to Reaffirm a Second Mortgage During Bankruptcy?
Many individuals who enter into bankruptcy with the desire to keep their homes file for Chapter 13 bankruptcy. Chapter 13 creates a repayment plan that allows you to make monthly payments toward your debts to your bankruptcy trustee. The amount of your monthly payment in the plan will be based upon your income and expenses. If you are behind on your mortgage payments, the past due amount and your current payments will be included as part of your plan, allowing you to catch up and keep your home while making affordable monthly payments.
In a Chapter 7, the bankruptcy discharge eliminates your responsibility to repay the mortgage, which means the mortgage company cannot file a lawsuit against you to obtain the remaining balance on the loan. However, since the mortgage is a secured debt, meaning the home is collateral for the loan, you have several options. For example, you can stop making payments on the property and surrender your home to your lender. In addition, if you are behind on payments, the lender can ask the court to order you to abandon the property, or the lender can initiate foreclosure proceedings during or after the completion of your bankruptcy case. If you are current on your payments, then you may be able to remain living in the property as long as you stay current.
However, each state differs regarding whether it allows lien stripping if the property is your primary residence. If you do strip a second or third mortgage in a bankruptcy, these loans do not completely disappear, but instead are treated in the same manner as unsecured debts, like credit card debt. This means that you will repay only a portion of the debt owed. In addition, if you are hoping to modify the terms of your loan for your primary residence by filing for Chapter 13 bankruptcy, this outcome is unlikely due to an exception in the Bankruptcy Code.