Why would an Order of Discharge of Debtor be Vacated? What does it mean for the creditors and Debtor when this happens?

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Why would an Order of Discharge of Debtor be Vacated? What does it mean for the creditors and Debtor when this happens?

Asked on June 23, 2009 under Bankruptcy Law, Pennsylvania

Answers:

B. B., Member, New Jersey Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

If an Order of Discharge is vacated, that means the bankruptcy has probably been reopened, and the debts that were in the bankruptcy are "back in play," as are the assets and income of the debtor.  For the debtor, this is probably very bad news.

Without knowing a lot more about the facts of the case, it's very hard to say why this might have happened.  There would have to be another order that vacated the discharge, and it should either state the reasons itself, or be accompanied by a judge's opinion or statement of reasons why the new order was entered.

For reliable advice about how this event affects your rights and obligations, you need to have an attorney review all the facts, including the latest order.  One place to find a qualified lawyer in your area is our website, http://attorneypages.com


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