How to Reopen a Bankruptcy
Federal law governs all bankruptcies in the United States. Some states augment bankruptcy law where federal law is silent or expressly refers to state law. Usually, once a bankruptcy is closed, all of the debtor's debt is discharged. However, several reasons may exist to reopen a bankruptcy. One reason is an unknown or undeclared creditor appears demanding payment. Another reason is where the United States trustee discovers a debtor has concealed an asset or claims ownership of an asset after the close of bankruptcy. For the most part, a debtor can move to reopen a bankruptcy case for good cause.
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Instructions
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Determine the relief you want. Before attempting to reopen the bankruptcy, you should figure out what it is you want the bankruptcy court to do. For example, if an unlisted creditor has appeared demanding payment, you may want the bankruptcy court to discharge that debt.
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Collect your records. If an unlisted creditor has appeared, you will need documentation regarding the debt. You can look for old statements or, if available, download online records of the debt and any payments you made. If you want the bankruptcy open for another reason, you will need whatever paper records you have or can obtain to support the reason and the relief you are requesting. If new information has come to light, any documentation that supports the fact you did not have knowledge prior to the bankruptcy closing would also help.
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Check the rules for your local bankruptcy court. You can find resources online with regard to the rules of your bankruptcy court. Rules and procedures differ among jurisdictions. It is important to understand what set of circumstances must exist for a bankruptcy judge to decide to reopen your case.
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Contact your attorney. Your attorney can draft a motion using the records you have collected asking for the relief you want. Your attorney will likely charge you additional fees for drafting the motion and appearing in court if necessary.
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Comply with any court order. After your attorney files the motion, the bankruptcy court may order you to provide additional documentation or submit a new payment plan. Whatever the court may order you to do, it is important that you comply with it.
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Tips & Warnings
Creditors have the right to object or oppose your motion to reopen the case. It is within the discretion of the bankruptcy judge -- and in some jurisdictions, the trustee -- to decide whether to reopen your bankruptcy case. If the creditor consents, it is more likely the judge will grant the relief you are requesting.
Contact a qualified attorney to determine whether attempting to reopen your case is the right course of action for your specific situation. This article is not intended to give legal advice or act as a substitution for competent legal counsel. It is for educational purposes only.
