Chapter 7 Problems that Can Arise After Your Discharge

  You made it through your Chapter 7.  The United States trustee did not object to your income and expense schedules.  The Chapter 7 trustee issued a report of “no assets.”  The judge issued a discharge and your case has been closed.  Everything is finished and you can move on with your life.  Right?  Maybe not!

  Bankruptcy has a way of remaining in your life.  Certainly a bankruptcy filing will affect your credit profile.  But did you know that your Chapter 7 trustee continues to have the power to pursue your assets for at least one year following discharge?

  Under the Bankruptcy Code, you are required to inform your Chapter 7 trustee if you inherit or otherwise come into money within six months after your discharge.  Those assets belong to your “bankruptcy estate.”  This is why trustees may ask you at your 341 hearing if you have recently inherited money or if you expect to inherit money.

  You may not want to think about possibly inheritances when you file, but if you have a wealthy, but sick relative who may have included you in her will, you need to advise your bankruptcy lawyer about this possible inheritance.

  The Bankruptcy Code also allows the trustee or creditors to file a motion to revoke your discharge if they learn of fraud or other improper activity after your discharge is issued.  Generally these types of motions must be filed within one year after discharge.

  Post discharge problems are rare, but they do arise. If you see that a potential problem is happening or could possibly happen, call your Clark and Washington lawyer.  Remember that our job is to protect you and that communications between you and our law firm are privileged and confidential.  Often an issue that you think may be a problem turns out to be nothing, and we can only help you if we have full disclosure of your information.

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