Your rights to a bankruptcy discharge when creditor files an objection

It's common for bankruptcy debtors to want to know whether or not right to discharge is guaranteed to them by virtue of their petition filings. This means whether or not a debtor would receive a discharge at a certain point in the time line of a bankruptcy case, is the point in question. Now, fact remains that this keeps varying. This variation essentially depends on the kind of bankruptcy you've filed.

In case of Chapter 7

If you've filed Chapter 7 liquidation, then you haven't got the absolute right to receive a discharge. Your creditors have got the right to file objections to your discharge. Moreover, they'd be receiving notifications of the deadline when it comes to filing such objections. This should come from the clerk of the bankruptcy court. Other parties might also be permitted to file objections to your discharge.

In the event that someone files a timely objection, the court would conduct a trial on the adversary proceedings of the creditor. This proceeding essentially is an evidential hearing. The court can then choose to deny a Chapter 7 debtor discharge. This is for the statutory bases that have been set forth in the Bankruptcy Code Section 727(a) in case you –

  1. Fail to complete the required financial management course.
  2. Conceal property up to 1 year before filing bankruptcy.
  3. Conceal property after filing bankruptcy.
  4. Make a false statement in the context of bankruptcy under oath.
  5. Fail to cooperate with the trustee's investigation.
  6. Use or make a false claim.
  7. Refuse to obey a bankruptcy court or other court's order.

In case of Chapters 12 and 13

If you file for a Chapter 12 or 13 which happen to be personal organization cases, then you can only receive discharge when you finish making plan payments. Only after the last plan payment would the discharge be issued.

Now, in case you fail to complete your financial management course, then you won't be discharged. Moreover, if you'd received a discharge in a prior bankruptcy case, then you won't be eligible for a subsequent discharge for a specific time period. This depends on the requisite time under the Bankruptcy Code.

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