How to Remove a Bankruptcy Discharge Order
In bankruptcy, a discharge is an order that prevents a creditor from collecting on an outstanding debt from the debtor. A discharge order essentially dissolves any liability the debtor has for the debt. Discharges are not necessarily a debtor's right and are not inherently absolute. Creditors and trustees can ask the judge to remove a bankruptcy discharge order if they have reason to believe the debtor obtained the property or the discharge fraudulently.
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Instructions
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Determine if the debtor defrauded the creditor or the court when he obtained the bankruptcy discharge order. Under § 727(d) of the U.S. Bankruptcy Code, a discharge can be revoked if the debtor obtained the discharge through fraud without the creditor's knowledge, acquired property and failed to report or surrender it, failed to explain any inconsistencies in an audit, or failed to provide all required documents for review. Removal is also possible if the debtor committed any of the fraudulent acts defined in § 727(a)(6) of the code.
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Gather any documentary evidence that demonstrates the debtor committed fraud. Testimony or sworn affidavits of anyone who assisted the debtor in defrauding the court would also be helpful to your case.
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Obtain a copy of the discharge order and other documents the debtor submitted when requesting the discharge, if you have not already. Review and make a note of any inconsistencies between the order, the supporting documents and the information you have about the debtor's fraudulent activities.
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Draft a Complaint to Revoke Order of Discharge to initiate the matter. State clearly your allegations of fraud and request to remove the bankruptcy discharge order. Include each inconsistency you previously noted and state what you believe are the facts. Attach any documents you reference in your complaint as exhibits to the end of your complaint and make a copy of the complaint before filing to retain for your records.
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File the complaint with the same court that handled the initial bankruptcy matter. This must be done within one year of the discharge order being granted and the date that the matter was closed. Send a copy of the complaint to the debtor after filing with the court and obtain the date and place of the hearing.
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Attend the hearing and provide all evidence you have obtained to prove that the fraud occurred. If you are successful in proving your case, the judge will revoke the bankruptcy discharge order and the debtor will once again be liable for the debt.
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