Can the bankruptcy trustee challenge my right to a discharge?
Under certain circumstances, the bankruptcy trustee appointed to administer your case may challenge your right to receive a bankruptcy discharge. If the trustee believes that you should not be entitled to a discharge, he or she will file an objection with the court and ask the judge to deny your discharge.
Can a Chapter 7 bankruptcy case be denied?
The rejection or denial of a Chapter 7 bankruptcy case is very unusual, but there are reasons why a Chapter 7 bankruptcy case can be denied. Many denials are due to a lack of attention to detail on the part of the attorney, errors made on petitions or fraud itself.
Why do bankruptcy attorneys get denied?
Many denials are due to a lack of attention to detail on the part of the attorney, errors made on petitions or fraud itself. The attorney has to be knowledgeable about the law and understand what is required by the courts and local trustees. Furthermore, the attorney must be comprehensive with the bankruptcy petition information.
What happens if I don’t cooperate to bankruptcy court?
Bankruptcy cases demand honesty and cooperation. If you fail to be honest in your paperwork or in your dealings with the court, or you fail to cooperate with the court or your trustee, your case can be dismissed or you can be denied a discharge, but still have to abide by other bankruptcy requirements.
What happens if bankruptcy gets denied?
A bankruptcy dismissal closes your bankruptcy case, and if it occurs before you receive a discharge, it will mean that: you've lost the protection of the automatic stay (the order that prohibits creditors from collecting debts), and. you'll continue to be liable for your debts.
What happens if your Chapter 7 bankruptcy is denied?
Denial of your Chapter 7 discharge doesn't stop the bankruptcy case. The Chapter 7 trustee will continue to gather and liquidate any non-exempt assets, but the debtor does not receive the benefits of the Chapter 7 discharge.
Which of the following is a reason to deny a debtor a discharge in bankruptcy?
The court may deny a chapter 7 discharge for any of the reasons described in section 727(a) of the Bankruptcy Code, including failure to provide requested tax documents; failure to complete a course on personal financial management; transfer or concealment of property with intent to hinder, delay, or defraud creditors; ...
Why are bankruptcies dismissed?
A dismissed bankruptcy takes place when the terms of the BK have not been met, fraud has been discovered or the bankruptcy court determined the filing is not appropriate. When you file for bankruptcy your aim is to have the debts that are included be wiped away.
How often is Chapter 7 denied?
Frequency of Denial While some Chapter 7 bankruptcy cases are kicked out of court before discharge, statistics indicate that this isn't the norm. According to the U.S. Courts website, when Chapter 7 cases are correctly filed, they result in a successful discharge of debts more than 99 percent of the time.
What disqualifies you from filing Chapter 7?
You can't file for Chapter 7 bankruptcy if a previous Chapter 7 or Chapter 13 case was dismissed within the past 180 days because of one of the following reasons: you violated a court order. the court ruled that your filing was fraudulent or constituted an abuse of the bankruptcy system, or.
Who gets denied bankruptcy?
5 Reasons Your Bankruptcy Case Could Be Denied The debtor attempted to defraud creditors or the bankruptcy court. A previous debt was discharged within the past eight years under Chapter 7. A previous debt was discharged within the past six years under Chapter 13.
What debt Cannot be removed by declaring bankruptcy?
Some of the most common debts that you cannot get rid of in bankruptcy are debts from child or spousal support, most student loans, most tax debts, wages you owe people who worked for you, damages for personal injury you caused when driving while intoxicated, debts to government agencies for fines or penalties, and ...
What are 5 types of debt that are not dischargeable in bankruptcy?
Nondischargeable debt is a type of debt that cannot be eliminated through a bankruptcy proceeding. Such debts include, but are not limited to, student loans; most federal, state, and local taxes; money borrowed on a credit card to pay those taxes; and child support and alimony.
Why do Chapter 13 bankruptcies fail?
In most cases, failure is due to one of several reasons: Life circumstances. Not having the guidance of an experienced bankruptcy attorney. Over-ambition.
Can creditors come after you after Chapter 13?
After you complete all plan payments, any remaining qualifying balances get wiped out. Creditors can no longer come after you to collect those debts.
Can I file for Chapter 7 twice?
Luckily, you can file for bankruptcy as many times as you want — but not necessarily receive a discharge as many times as you want. While you can file for bankruptcy at any time, you can only receive a bankruptcy discharge every certain number of years. For Chapter 7 cases, it's every eight years.
How many times can you file bankruptcy?
Legally speaking, a person can file for bankruptcies as many times as they want. However, the process becomes more restrictive. With a second bankruptcy, you will not qualify for an automatic bankruptcy discharge in nine months.
What are some reasons for discharge denial?
Normally the only way for a court to deny you a discharge is if you are either dishonest or you fail to follow court rules and requirements....Attempt to Defraud. ... Concealing or Destroying Information. ... Lying. ... Loss of assets. ... Refusal to comply with court order. ... Failure to take instructional course.
What are 5 types of debt that are not dischargeable in bankruptcy?
Nondischargeable debt is a type of debt that cannot be eliminated through a bankruptcy proceeding. Such debts include, but are not limited to, student loans; most federal, state, and local taxes; money borrowed on a credit card to pay those taxes; and child support and alimony.
What Happens If the Trustee Objects to Your Discharge?
If the trustee wants to object to your discharge, he or she must file an adversary proceeding (a lawsuit) in your bankruptcy case and set forth the reasons why you should not be allowed to receive a discharge.
What is Martindale Nolo?
Nolo is a part of the Martindale Nolo network, which has been matching clients with attorneys for 100+ years.
How to oppose a trustee's objection to discharge?
To successfully oppose the trustee's objection you must know how to conduct discovery, present evidence, and litigate the issues in court . Further, the stakes are extremely high because if the judge denies your discharge, ...
What happens if a party in interest wants to challenge your discharge?
If a party in interest wants to challenge your discharge, it must file a written objection with the court and explain to the judge why you should not receive a bankruptcy discharge.
What does bankruptcy discharge mean?
A bankruptcy discharge eliminates your personal liability for (and obligation to pay back) most types of debt. But the bankruptcy trustee, the U.S. Trustee, and your creditors have the right to challenge your discharge if they believe that you should not be allowed to wipe out some or all of your debts in bankruptcy.
What is the 341 hearing?
lie on your bankruptcy papers or during your meeting of creditors (also called the 341 hearing) hide, transfer, or destroy your property in order to defraud your creditors. conceal, destroy, falsify, or fail to keep records of your financial activities. fail to obey a lawful court order, or.
What happens after a trustee files an objection?
After the trustee files the objection, you will have a chance to respond to the complaint and explain to the court why you deserve a discharge. The court will then hold a trial and give each party an opportunity to present its case before deciding whether to grant or deny your discharge.
How to serve a complaint to deny discharge?
Under the Bankruptcy Code, a complaint to deny your discharge can be served on you by mail at the address on your bankruptcy petition. This is different from other lawsuits, where you must be personally served.
How to 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.
What happens if you file a complaint in bankruptcy?
At trial, the person who filed the complaint will have to prove that it is more likely than not that you lied on your bankruptcy petition or committed some other act or omission that should result in the denial of your discharge. If the bankruptcy judge rules against you, he will enter a judgment denying your discharge.
What is the goal of filing for bankruptcy in 2020?
Updated August 28, 2020. For most people who file bankruptcy, discharge is the goal. In exchange for that discharge, the bankruptcy system requires that a Chapter 7 or Chapter 13 debtor—the person who files a bankruptcy case—give up nonessential assets which will be distributed to creditors to satisfy debts.
How long do you have to respond to a bankruptcy complaint?
After you are served with the complaint, you have 30 days to file your response, which generally will come in one of two forms: an answer or a motion to dismiss. However, these types can be combined into one document. An answer replies to the factual statements in the complaint and must admit or deny each. A motion to dismiss is a legal maneuver that is more complex and requests that the court dismiss the complaint because it is legally deficient in some way. Many bankruptcy courts keep forms for complaint answers for debtors who do not have lawyers. If you do not answer the complaint or file some sort of response, a default will be taken, which means that the other party wins automatically.
What happens if you don't cooperate with bankruptcy court?
If you fail to be honest in your paperwork or in your dealings with the court, or you fail to cooperate with the court or your trustee, your case can be dismissed or you can be denied a discharge, but still have to abide by other bankruptcy requirements. Some of the reasons your discharge could be ...
What are the requirements for bankruptcy?
Bankruptcy cases demand honesty and cooperation. If you fail to be honest in your paperwork or in your dealings with the court, or you fail to cooperate with the court or your trustee, your case can be dismissed or you can be denied a discharge, but still have to abide by other bankruptcy requirements. Some of the reasons your discharge could be denied include: 1 You hid property. 2 You destroyed your financial books or records. 3 You made false statements, orally or in writing, about your assets, earnings, and debts. 4 You failed to explain or account for the loss of property or money. 5 You failed to complete a required credit counseling or financial management course. 6 You violated a court order. 7 You failed to disclose a prior bankruptcy case. 8 You received a Chapter 7 bankruptcy discharge within the past eight years or a Chapter 13 discharge within the past six years.
Top Reasons Judges Dismiss Chapter 13 Cases
There are many reasons a judge might dismiss a bankruptcy petition. The bankruptcy law is exact, and any misstep can result in a case dismissal. Below are the most common reasons:
Refiling for Bankruptcy
In some cases, you can immediately refile Chapter 13 to reinstate the automatic stay, provided you can correct the mistakes that resulted in the dismissal. Other times you must complete a waiting period before you can refile. The reason for the dismissal determines whether you can immediately refile.
Other Debt Relief Alternatives
The Chapter 13 bankruptcy is complex, and 97% of people who file without an attorney have their case dismissed without receiving the debt relief sought.
What is required of a bankruptcy attorney?
Furthermore, the attorney must be comprehensive with the bankruptcy petition information.
Why do you need to provide accurate information to your attorney?
You need to provide accurate information to your attorney because these are the materials that will be listed on your bankruptcy petition and you could lose the ability to recover the benefits of bankruptcy if it is identified that you purposely hid information from anyone involved in the case.
Why is Chapter 7 denied?
Many denials are due to a lack of attention to detail on the part of the attorney, errors made on petitions or fraud itself. The attorney has to be knowledgeable about the law and understand what is required by ...
What is a Chapter 7 discharge petition?
The petition has to include all of the debtor’s assets and each asset’s value. In the event the value is substantial in comparison to the loan payoff, the trustee could be allowed to sell the asset. Any mistakes made in that process could lead to the petition being denied. The main criteria for a Chapter 7 discharge have to do with ...
Can a debtor file for Chapter 7 bankruptcy?
Additionally, under Chapter 7 bankruptcy rules, a debtor may be considered ineligible under the following circumstances: The debtor failed to attend credit counseling. Their income, expenses, and debt would allow for a Chapter 13 filing. The debtor attempted to defraud creditors or the bankruptcy court. A previous debt was discharged within the ...
Can a Chapter 7 petition be denied?
Any mistakes made in that process could lead to the petition being denied. The main criteria for a Chapter 7 discharge have to do with the debtor’s household income, which must be lower than the debtor’s necessary/reasonable household expenses paid on a monthly basis.
What happens if you are not honest on your chapter 13?
If you are not honest then the court may find that you filed in bad faith and not approve your plan.
Why is Chapter 13 denied?
In the majority of cases where the court denies a chapter 13 plan, it is because a debtor did not comply with requirements outlined by your attorney or the court.
Does Bond and Botes have a lawyer-client relationship?
The use of e-mail or this form for communication with the Bond & Botes Law Offices or any of our individual attorneys does not establish a lawyer-client relationship. By submitting this form you agree that you have read and understand the Disclaimer.
Can you get Chapter 13 if you are behind on payments?
In some districts, your chapter 13 payment will not be approved if you are behind on payments; therefore, it is important that you maintain your payments in your chapter 13 case to make sure your plan will be confirmed.
Do you have to be current on child support after bankruptcy?
3) If you owe child support obligations, you must be current on your post-petition child support obligations (all child support payments due after your bankruptcy filing).
Fraud
The Bankruptcy Means Test
- Another reason why your claim could be denied comes as a result of failing the financial means test. The ID of the financial means test is to make sure that bankruptcy does not become a burden on the courts and that people who are capable of paying back their debts can do so without filing for bankruptcy. The financial means test works by deducting a series of monthly p…
Failure to Complete Education Classes
- Under US bankruptcy law you will need to complete two educational courses to receive a debt discharge. If you file for Chapter 7 bankruptcy, it’s likely you will have to agree to credit counseling courses before starting your bankruptcy case. The goal of these classes is to educate debtors for their future financial situation. These courses include information about the repayment of debt a…
Making Sure Your Bankruptcy Case Is Not Denied
- If you’re facing the decision to file for Chapter 13 bankruptcy or Chapter 7 bankruptcy and you want to make sure that you can present a clear financial situation, working with a professional bankruptcy attorney can make sure you can have everything in place for the courts. The decision to file for bankruptcy can be a difficult one and it may feel like you’re the only option once you be…