As we had discussed it few times in this forum that the purpose of filing Chapter 7 is to get a discharge from the accrued debts, and that is one foremost objective. This discharge gives debtors fresh start that the bankruptcy is meant to provide. However, discharges are not automatic and can be contested by Trustee or its attorneys. Even, if discharges are granted, it can be revoked. We have previously mentioned that the procedure to get discharges is not complex rather it is simple. This discharge is generally granted within 60 days in the normal course of business after the first meeting of creditors i.e. 341 meeting in Chapter 7. In Chapter 13, the discharge is granted after the debtor completes payments under a confirmed plan or upon the court granting a motion by the debtor for a hardship discharge. We at the Law Office of Malik Ahmad, are willing to give free consultation to genuine clients (not for academic discussion only) www.fastbankruptcynevada.com
Objections to Discharge in Chapter 7 Cases.
The objection can arise from a complaint filed by the United States Trustee if there are matters concerning the passing of Means Test, or a wrong calculation was used. The grounds for denial of discharge listed in section 727 only apply in Chapter 7 cases. 11 U.S.C. Sections 103(b). This motion must be filed within 30 days. In addition, the court may deny discharge on its accord. If a discharge is denied in chapter 7, all the non-exempt property to the creditors is lost and property taken as exempt can be used to set off these claims.
What are the Grounds for Objection to Discharge?
1. Debtor is not an individual. Only individuals can be discharged, corporation cannot be discharged.
2.Intentional concealment, Transfer or Destruction of Property 11U.S.C. Section 727(a)(2)
This applies when debtor has intentionally concealed assets in order to prevent creditors from obtaining access to them in bankruptcy. The debtor must have committed the act with actual intent to hinder, delay, or defraud a creditor or officer of the estate.
3. The debtor had unjustifiably failed to keep books or records as to finances. (11 U.S.C. Section 727(a)(3)
4. The debtor had shown dishonesty in conjunction with the bankruptcy case. (11 U.S.C. Section 727(a)(4)
5. The debtor had failed to explain loss or deficiency of Assets (11 U.S.C. Section 727(a)(5).
6. The debtor has refused to obey court orders or to testify. (11 U.S.C. Section 727(a)(6)
7. The debtor had committed some prohibited acts in connection with another bankruptcy case concerning an insider ((11 U.S.C. Section 727(a)(7)
8. The Code also bars a chapter 7 discharge in many cases when a debtor has received a discharge under chapter 13 or its predecessor within the previous six years.
9. The Court may deny a discharge based upon a court-approved written waiver of discharge executed after the order for relief.
10. The debtor had failed to complete course in personal financial management.