So you’ve filed bankruptcy and want to know if the Trustee can revoke your discharge? The answer is yes! A discharge is a release of a debtor from personal liability for certain dischargeable debts. A discharge releases a debtor from personal liability for certain debts known as dischargeable debts and prevents the creditors owed those debts from taking any action against the debtor or the debtor’s property to collect the debts. The discharge also prohibits creditors from communicating with the debtor regarding the debt, including through telephone calls, letters, and personal contact.
In a typical Chapter 7 bankruptcy case, a discharge order is entered by the court roughly four months after the bankruptcy is filed. However, just because a discharge order has been entered this doesn’t mean that it can’t be revoked by the Trustee. There are several common reasons a Trustee will revoke a discharge.
The most common reason for the revocation of a discharge is for fraud or misrepresentation of material facts. Trustee’s and their staff are very skilled at what they do and can sniff-out a liar from a mile away. So don’t lie! Not only can you lose your discharge but concealing assets in a bankruptcy is a felony and punishable by up to 5 years in prison.
Another reason a Trustee will revoke a discharge is if a person fails to provide the Trustee with additional documentation. A Trustee may ask for additional bank statements, pay stubs, tax returns or documentation surrounding a transaction. Just because you’ve received your discharge doesn’t mean you can ignore your Trustee. Give him whatever he asks for by whenever he asks for it.
Lastly, a Trustee’s main form of communication is through the mail. So if you move during your bankruptcy let your attorney know so he can file a change of address with the court. Otherwise the Trustee may be sending you letters requesting additional documents and you will not be able to comply.