Debt problems seem like they can spiral out of control in the blink of an eye. One day you seem to have everything under control, making your payments on time and consistently paying off your debts. Then something unexpected happens on the next day and you are left totally overwhelmed. You're unable to make your minimum payments and you're slapped with excessive penalties and interest fees that leave you scrambling to make ends meet. As stressful as this can be, you should take comfort in knowing that you have debt relief options.
We've spent a lot of time on this blog discussing Chapter 7 liquidation bankruptcy, as well as how it can benefit you. Today, though, we want to make you aware of times when discharge under Chapter 7 bankruptcy is denied. Knowing this is imperative because, while Chapter 7 may provide you with the ability to obtain the fresh financial start you desire, failing to properly pursue it could result in an unwanted outcome and even more financial problems.
Under federal law, there are a number of ways that Chapter 7 discharge can be revoked. In most instances a revocation will come after a creditor or the bankruptcy trustee reports and proves that the discharge was obtained via fraud. Revocation may also occur if it is discovered that the debtor made material misrepresentations or did not provide all relevant documentation for purposes of pursuing the bankruptcy plan. Additionally, discharge may be revoked when property is acquired and creditors and/or the trustee are not properly notified.
As we've said before, Chapter 7 bankruptcy is a great way to hit the reset button on one's financial situation. Yet, successfully proceeding through the personal bankruptcy process can be fraught with legal challenges. To ensure you don't go astray and wind up causing yourself more harm, you may want to think about acquiring help form an experienced bankruptcy attorney in the Tyler area.
Source: U.S. Courts, "Chapter 7 - Bankruptcy Basics," accessed on April 29, 2017