What can cause a discharge to be denied?
What can cause a discharge to be denied?
One common ground for denying a discharge is when the debtor — with intent to hinder, delay, or defraud a creditor — transfers, removes, destroys, mutilates, or conceals property within one year before the date of filing for bankruptcy or any time after the date of filing.
How can a bankruptcy trustee deny a discharge?
The first step in seeking to deny the discharge of a debtor is to file a complaint. This starts a lawsuit within the bankruptcy case, commonly called an adversary complaint. The complaint is a document usually filed by the bankruptcy trustee or a creditor setting forth why the debtor should not receive the discharge.
When can my discharge be denied in Chapter 7 or Chapter 13?
In other words, fraudulent transfer will lose a debtor his or her discharge. If the debtor conceals, destroys, mutilates, falsifies, or fails to keep or preserve any recorded information, including books, records, and papers from which his or her financial condition can be determined, that is grounds for a denial of discharge.
What does discharge mean in the Bankruptcy Code?
The “discharge” is a sort of “master injunction” under Federal law, by way of the US Bankruptcy Code, that removes a debtor’s obligation to repay any of the dischargeable debts (some are not!) that the debtor had prior to the day he or she filed for bankruptcy.
Can a discharge be denied in a Chapter 7 bankruptcy?
The court will deny a discharge in a later chapter 7 case if the debtor received a discharge under chapter 7 or chapter 11 in a case filed within eight years before the second petition is filed.
The first step in seeking to deny the discharge of a debtor is to file a complaint. This starts a lawsuit within the bankruptcy case, commonly called an adversary complaint. The complaint is a document usually filed by the bankruptcy trustee or a creditor setting forth why the debtor should not receive the discharge.
The “discharge” is a sort of “master injunction” under Federal law, by way of the US Bankruptcy Code, that removes a debtor’s obligation to repay any of the dischargeable debts (some are not!) that the debtor had prior to the day he or she filed for bankruptcy.
When is a debtor ineligible for a chapter 13 discharge?
A debtor is ineligible for discharge under chapter 13 if he or she received a prior discharge in a chapter 7, 11, or 12 case filed four years before the current case or in a chapter 13 case filed two years before the current case.