As top bankruptcy attorneys in New York, Jacoby & Jacoby has the expertise, resources and compassion to guide you through the bankruptcy process. Ready to find financial freedom? Give us a call at (888) 452-2629 to schedule a free consultation today.
For people in certain financial situations, filing for bankruptcy can be a godsend. It can help them escape insurmountable debt and provide the financial assistance they need to get their lives back on track. However, it’s not always an easy process to go through.
Depending on the type of bankruptcy, the process of gathering the necessary documentation and information can be a daunting task. Filing for bankruptcy involves myriad complexities and is best executed by a bankruptcy attorney. But what happens when it isn’t? What happens when you and your bankruptcy filer leave out crucial information?
In these circumstances, it may be in your best interest to reopen your bankruptcy case. As frustrating as it is, re-filing correctly can offer tremendous benefits in the long run. However, not everyone is eligible to do so.
As New York’s number one bankruptcy filer, Jacoby & Jacoby specializes in getting the job done right the first time—and helping people who’ve filed incomplete, inaccurate bankruptcy applications the first time around. Curious about reopening your bankruptcy case? Keep reading to learn everything you need to know, including eligibility requirements under New York law.
Failing to find relief after an incomplete bankruptcy filing? Don’t worry—the bankruptcy lawyers at Jacoby & Jacoby are here to help. Contact us online to schedule a free case evaluation and explore your options for reopening your case.
Reasons for Reopening a Bankruptcy Case
The goal of bankruptcy is typically to discharge as much debt as possible. A bankruptcy discharge is a court order releasing a debtor from liability of certain debts. Once the discharge is granted, a bankruptcy case is typically considered final and closed. However, that’s not always the case.
If you’ve filed for bankruptcy before, you know it’s a potentially long, arduous process. As such, you may be wondering why anyone would want to reopen their case. It’s important to understand that reopening a bankruptcy case can offer a number of benefits to certain debtors, including the opportunity to do the following:
- Address new debts. In some situations, reopening a bankruptcy case allows debtors to include debts incurred after the closure of their original filing.
- Discharge previously undisclosed debts. For people who are navigating substantial debt, keeping track of all of it can be challenging. If you unintentionally failed to disclose certain debts in your initial filing, reopening your case gives you the chance to have them discharged.
- Correct mistakes and omissions. If you’ve discovered inaccuracies in your original bankruptcy forms, reopening your case can afford you the opportunity to correct them, as well as to include unintentional omissions. These inaccuracies may include missed creditors, incorrect asset information and more.
- Reinforce protection from creditors. If you’re facing continued harassment from creditors after the closure of your bankruptcy case, reopening it can help you reinforce the legal protections afforded by the automatic stay. This stay prohibits creditors from pursuing collection actions against you.
- Resolve disputes. Some disputes arise after the conclusion of bankruptcy cases, and if this is your situation, reopening your case may provide an avenue by which to address them. Disputes may include disagreements with creditors, challenges to the dischargeability to certain debts and other unresolved matters.
- Adjust the terms of your bankruptcy plan. If your financial situation has changed significantly since the closure of your case, reopening it may give you a chance to modify your plan according to your current financial situation.
Although these are all viable reasons for wanting to revisit a bankruptcy filing, you need to remember that not every situation warrants a reopening. If you have questions about your eligibility for refiling, the best way to find answers is by consulting an experienced New York bankruptcy attorney.
Who Is Eligible to Reopen a Bankruptcy Case?
Keep in mind that just because you’d like to reopen your bankruptcy case doesn’t necessarily mean you’re eligible to do so. The best way to understand your eligibility is by speaking with a legal professional. Depending on their specific details of their cases, people in the following situations may be eligible to pursue reopening:
- Filers who’ve received a discharge
- Filers with a change in financial circumstances
- Filers who’ve discovered omissions or errors
- Filers who’ve discovered undisclosed assets
- Filers who’ve allegedly violated bankruptcy law
Ultimately, a person’s eligibility to reopen a bankruptcy case is up to the discretion of the bankruptcy court. In determining whether or not to allow a debtor to reopen a case, the court will consider the specific circumstances, grounds for reopening, potential impact on creditors and integrity of the initial bankruptcy process.
The Process of Reopening a Bankruptcy Case
Reopening a bankruptcy case can be a difficult undertaking. In New York, debtors seeking to reopen a case must follow a specific process. Although it’s possible to do so alone, your chances of success are much higher when you work with an experienced bankruptcy attorney.
After you’ve partnered with a legal professional, the two of you will complete the following process together:
- Filing a motion to reopen your case. Your attorney will prepare and file a motion that clearly states your reasons for wanting to reopen your case and why you should be allowed to do so. It’s essential to present compelling evidence to the court if you want them to grant you motion.
- Notifying creditors and other parties involved. After the motion is filed, the court will notify creditors and other parties involved in the original case that it’s been reopened. The purpose of this notification is to allow them an opportunity to respond or object to the motion if they have legitimate concerns.
- Attending your court hearing. In some cases, the court may schedule a hearing to discuss your motion. Your attorney will attend the hearing with you and present evidence to support the reopening of your case for the court to evaluate.
If the court rules in your favor, your bankruptcy specialist will work with you to refile your bankruptcy application—but correctly this time, with all of the pertinent, accurate information.
Jacoby & Jacoby: New York’s #1 Bankruptcy Filer
If you’ve never filed for bankruptcy before, this article should demonstrate why hiring the right bankruptcy specialist from the beginning is absolutely crucial to your success. If you’re seeking a reopening of your case, it’s just as important, and Jacoby & Jacoby is up to the challenge.
Ready to start making your bankruptcy work for you? Getting started is as easy as scheduling a free consultation online. Rather speak to a member of our legal team on the phone? No problem—give us a call at (888) 452-2629 today.