Just Because Your Bankruptcy Case is Closed Doesn’t Mean It’s Really Closed

When a bankruptcy case is closed, a discharge order wiping out most if not all of your debts is issued. However, there are instances in which closed cases are reopened. In this article, we’ll talk about why.

Who Can Reopen a Bankruptcy Case?

In most cases, your bankruptcy case may be reopened by three parties: you, the assigned bankruptcy trustee to your case or another party (usually a creditor) who has an interest in the case.

Why Reopen a Bankruptcy Case?

Generally speaking, courts have a lot of leeway in deciding if a closed bankruptcy case can be reopened. The most common reasons are:

• The debtor (you) has been found to have filed in bad faith, meaning that additional assets or property were not previously listed
• To remove liens placed against property that will interfere against exemptions you claim in your bankruptcy
• To provide the debtor with relief or challenge a violation of the original discharge
• The debtor wanting to add a debt that was forgotten
• The need to correct various mistakes in the bankruptcy papers
• Some debtors being harmed because they did not receive notification of your filing for bankruptcy

How to Reopen a Bankruptcy Case

In most instances, you’ll not have to notify creditors about your intention to reopen your case. Rather, you simply need to file a motion stating why you want to reopen the case.

For All of Your Bankruptcy Questions, Call The Oswalt Law Group

The ability to reopen a bankruptcy case is further evidence of the complexities of bankruptcy law, and why you need the expertise of an attorney skilled in all aspects of it. If you’re considering bankruptcy, we strongly urge you to contact us here at The Oswalt Law Group to make sure your case is handled correctly. Call us at 602-225-2222 for a free consultation.