When Can Bankruptcy Discharge Be Denied?

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When Can Bankruptcy Discharge Be Denied?

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Discharge is an essential component of filing for bankruptcy as it helps in bringing the financial situation on track. Whether chapter 7 or chapter 13, the discharge helps in some respite in a dire financial scenario. But there can be situations where the discharge can be denied. It can be extremely annoying or disappointing, but it is worth knowing why your discharge can be denied. To ensure, this does not happen to you, make sure you have the best attorneys in town from Los Angeles & Dallas, TX by dialing 888-297-6203.

Reasons for discharge being denied can be as follows-

  • Any property or asset was hidden or missing from the filed documents to the bankruptcy court
  • Any of the financial records or books were hidden, destroyed, or manipulated
  • False statements or information were made or provided with respect to assets, income, debts, expenses, etc.
  • No valid justification was provided for a loss of property
  • Could not comply with the mandatory learning requirements like the credit counseling before filing for bankruptcy and the financial management course before the bankruptcy order
  • The Court order was violated
  • The prior bankruptcy case was hidden or not disclosed
  • A discharge was already granted in the last few years precisely 8 years if applied bankruptcy via Chapter 7 and 6 years if applied bankruptcy via Chapter 13

How does a denial for discharge begin?

Lenders want to pursue any option that provides for the highest probability to recover their debts. One of them is seeking for an adversary judgment that denies discharge to the debtor. This procedure has started a lawsuit within the bankruptcy case on the grounds of a complaint filed by the lender. The bankruptcy trustee might also initiate such a complaint against the filer if he is not able to get satisfactory answers from the debtor. Once the complaint is submitted the debtor has 30 days to respond to the complaint either by accepting the charges or by a motion to dismiss by providing supporting documents declining the claim made by the bankruptcy trustee or the lender.

Though bankruptcy can be filed without an attorney. During the lawsuit inside the bankruptcy case, the trial will need a lawyer to represent the debtor. If the bankruptcy court denies for discharge and agrees for manipulation, perjury, fraud, and similar charges, the debtor is exposed to be prosecuted under criminal charges as well. To know more about bankruptcy and discharge-related aspects, log on to https://www.recoverylawgroup.com/bankruptcy/.