Can I get my bankruptcy discharge revoked or withdraw my bankruptcy petition?

Asked about 1 year ago - Rochester, NY

I filed bankruptcy in the past six months.
I had my trustee meeting.
Two months later I got my discharge.
Three months after that my bankruptcy is still open.

I inadvertently left assets off my schedules and I am now having the schedules amended to include them.

However, I believe I never would have filed bankruptcy had I known about these assets at the time of filing.

Can I ask the trustee to revoke my discharge or can I withdraw my bankruptcy petition since it is still open?

Or will the trustee revoke my discharge because of my new assets?

Additional information

The assets include a lawsuit (already filed, thus the assets) which could possible be worth $150,000 and the debts were half only one quarter of that.

If the bankruptcy is not discharged I will lose my right to sue and the bankruptcy trustee may settle with the defendant. Had I known about these assets I would never have filed bankruptcy. I would pay back the debts if I won my already filed lawsuit. Scenarios?

Attorney answers (7)

  1. Michael Hal Schwartz

    Pro

    Contributor Level 15

    12

    Lawyers agree

    Answered . You inadvertently left off a law suit worth $150,000.00? You will probably still get your discharge but the trustee will hire the lawyer that is suing and settle the case and pay off your creditors. On the positive side, if there is anything left off after the settlement it will go to you. While you amend your schedules make sure to claim as much of the asset as exempt as possible.

    Answers are provided for direction only; it is not a substitute for an office consultation.
  2. Theodore Lyons Araujo

    Pro

    Contributor Level 20

    10

    Lawyers agree

    Answered . Revoking the discharge would do no good even if you could...the bankruptcy is still filed and on your credit report. Think of the bankru[ptcy as holding creditors at bay while you litigate your rights. Also, you may not have to pay all of the debts as it is not uncommon for creditors to failt to file a "Proof of Claim" in an asset chapter 7, so you may make out better anyway with the filing.

    Disclaimer: This answer does not constitute legal advice. I am admitted in the States of New York, New Jersey and... more
  3. Albert Cohen

    Contributor Level 9

    9

    Lawyers agree

    Answered . To build on the very goodresponses already given, once a bankruptcy case is filed your estate is under the control of the court. The trustee is highly unlikely to permit you to withdraw your petition. Failure alone to disclose such significant assests may be seen as fraud on the court. At best the trustee will settle your case, pay off those creditors who have file a prrof of claim, collect a fee for the work performed and return the balance to you.

  4. Ray Choudhry

    Contributor Level 14

    9

    Lawyers agree

    Answered . Unlike a Chapter 13, in a Chapter 7 bankruptcy the debtor dos not have an automatic right to dismiss the case.
    If assets are discovered, the Trustee can object to the dismissal so that he can administer the assets.
    Now that you have been discharged, there is no good reason why the discharge should be vacated and you be allowed to dismiss the case.
    If your assets exceed your bills, you will get to keep the extra.
    Look at it this way, when you filed you wanted to get rid of your bills. Now that assets have been found, creditors shouldn't have to chase you down to get paid.

  5. Scott Benjamin Riddle

    Pro

    Contributor Level 20

    9

    Lawyers agree

    Answered . Facts are important. That starts with the specific assets at issue, and the reason you left them off or didn't know about them. As pointed out, there is no right to dismiss. It is usually difficult to get it dismissed when there are assets but, again, you left out the important parts of the story.

  6. Dorothy G Bunce

    Pro

    Contributor Level 20

    6

    Lawyers agree

    Answered . The criteria a judge uses to determine whether to dismiss a bankruptcy is what is in the best interests of the creditors. If it is likely that the creditors will be paid a substantial portion of what is owed to them, the court is unlikely to dismiss. It is hard to justify giving you what you want when you failed to properly submit information required in the bankruptcy filing. You are required to show that you were diligent in your efforts to properly make full disclosure of your assets. Your actual knowledge isn't the criteria that will be persuasive to the court. That's why I say filing Chapter 7 is like jumping off of a cliff. Hope this perspective helps!

  7. Marc Gregory Wagman

    Contributor Level 17

    3

    Lawyers agree

    Answered . You no longer have any control in a Chapter 7 once the case is filed. The trustee would object to the dismissal if an asset was left off if the Debtor tries to dismiss the case. The trustee now has the right to settle the case for the benefit of your creditors.

    The response given is not intended to create, nor does it create an ongoing duty to respond to questions. The... more

Can't find what you're looking for? Ask a Lawyer

Get free answers from experienced attorneys.

 

Ask now

22,794 answers this week

2,845 attorneys answering

Ask a Lawyer

Get answers from top-rated lawyers.

  • It's FREE
  • It's easy
  • It's anonymous

22,794 answers this week

2,845 attorneys answering