Am I Guaranteed a Discharge at the End of My Bankruptcy Case?
Hard financial times put some people in a position where it is difficult to keep up with their bills. Whether your debt has accumulated over a period of time or as a result of a serious emergency situation, filing bankruptcy can provide much needed relief by wiping out debt. Both Chapter 7 and Chapter 13 bankruptcy cases conclude with the debtor receiving a discharge which means that you no longer have legal responsibility to those debts. Regardless of the type of bankruptcy case, some of your debts may not qualify for discharge. The bankruptcy court may, based on several different grounds, deny a debtor’s discharge. The reasons for and the process of a denial of a discharge varies depending on or upon under which chapter you filed.
Chapter 7 discharge denials
In Chapter 7 cases, either a creditor or a bankruptcy trustee may file an objection to a debtor’s discharge. Creditors must file a complaint with the court through an ‘adversary proceeding’ in order to object to a debtor’s discharge. At the adversary proceeding, the creditor or trustee must prove to the court that the debtor:
- failed to provide requested tax documents
- failed to finish the required personal financial management course
- transferred or concealed property with intentions to hinder, delay, or defraud creditors
- destroyed or concealed books or records
- committed perjury and other fraudulent acts
- failed to provide an accounting for the loss of assets
- violated a court order or received a discharge in an earlier case outside the time limits
Creditors must file a complaint with the court before the deadline as posted in the notice that all creditors receive soon after a bankruptcy petition is filed.
Chapter 13 discharge denials
Debtors who file under Chapter 13 cases may be ineligible for a discharge if they:
- failed to complete all payments according to the Chapter 13 repayment plan
- failed to finish the required personal financial management course
- received a discharge in prior bankruptcy case that commenced within specific time limits
Creditors in Chapter 13 cases may not object to a discharge if the debtor completes the repayment plan. Instead, creditors may object to the confirmation of the repayment plan.
It is important to follow the Bankruptcy Rules to ensure that you reach your goal of becoming debt-free. Harold Shepley and Associates can help you navigate through the process and avoid any pitfalls. Contact our experienced experienced attorneys. You have nothing to lose but your debt.
August 20, 2013 Posted in Bankruptcy Tagged chapter 13, chapter 7, debt discharge, Pennsylvania bankruptcy attorney Leave a comment
