Can My Bankruptcy Case Be Reopened After I Receive a Discharge?

After completing your bankruptcy, you will receive a "discharge" eliminating your liability for many types of debt, and in most cases, the court will close your case shortly after that. However, the court can reopen it for various reasons, even after you receive your discharge. Learn under what circumstances your bankruptcy case can be reopened and who can request it.

When the Court Will Reopen a Bankruptcy Case

Generally, you, the bankruptcy trustee, or any other party in interest, such as a creditor, can ask the court to reopen a bankruptcy case, and the court will do so if there is a good reason. But it's at the court's discretion.

In most cases, the court will reopen a closed bankruptcy if the debtor has additional property or assets that the Chapter 7 trustee must administer or if the court must give the debtor some type of relief, such as removing a qualifying judgment lien.

Why You Might Want to Reopen Your Bankruptcy Case

If the court dismisses your bankruptcy because you failed to file a required form or made some other procedural mistake, it's understandable that you might wish to reopen your case to fix the error. However, sometimes, a debtor will ask the court to reopen a bankruptcy case after receiving a discharge if they realize they made a mistake on the petition, such as forgetting to list an asset.

For instance, a court might consider reopening a bankruptcy if the debtor:

• accidentally forgot to disclose all of their assets
• wants to add a debt they forgot to list
• intends to file a motion to avoid a judgment lien
• want the court to address a violation of their discharge, or
• needs to correct other mistakes on their bankruptcy papers.

Judges are usually good about reopening cases in these situations or when debtors have other valid reasons to need the court's assistance.

Why the Trustee or Creditors Might Want a Bankruptcy Case Reopened

In most cases, the trustee or your creditors will ask the bankruptcy court to reopen your case if they find assets that weren't disclosed on the bankruptcy forms, if they were "prejudiced" or harmed because they didn't receive notice of the bankruptcy, or if they discover another significant mistake in the bankruptcy petition.

How to Reopen a Bankruptcy Case

If you want to reopen your bankruptcy, you must file a motion to reopen stating your reasons. In many jurisdictions, you can file a quicker ex parte motion process. But court rules vary, and the procedure used could depend on your reason for reopening your case. You'll also want to submit a proposed order for the judge to sign along with your motion.

Even if you're successful, you'll likely have another step. Specifically, you'll need to file additional paperwork to request the relief you seek, such as adding a creditor, filing a motion to avoid a lien, or initiating an adversary proceeding against a creditor for violating your discharge.

Consult a Bankruptcy Lawyer

Reopening a closed bankruptcy case is an unusual procedure that doesn't occur unless the debtor is facing negative consequences. To ensure you proceed properly, consider retaining a knowledgeable local bankruptcy lawyer.