Jun 10
15
What Is Bankruptcy Discharge?
Although the word bankruptcy does not resonate anything pleasant, but if have to file bankruptcy, bankruptcy discharge is the only term you would ever want to hear. When your bankruptcy petition has been discharged in the court of law, the creditors you have listed in the petition can no longer take legal actions against you to recoup the debt.
Can I get a bankruptcy discharge?
Under normal circumstances, you will most likely receive the bankruptcy discharge. Even though the process of filing for bankruptcy has become longer and more difficult (since the passage of the new bankruptcy law in 2005), if you are truthful about your financial standings, almost 100% of the time, you will be rewarded the bankruptcy discharge.
Who decides if you will get the discharge?
Your bankruptcy case will be appointed a bankruptcy judge who will be presiding over your case. Bankruptcy case is unlike any other law cases. You do not need to be present in front of the judge. The judge will review all the documents and evidences presented to him/her by the trustee and grant or deny you the bankruptcy discharge. Even though the trustee can make recommendation to the bankruptcy judge to deny you the discharge ruling, the judge has the final say in this matter.
It is not impossible to be denied a bankruptcy discharge, but it is not a frequent occurrence. Your bankruptcy discharge can be denied if you are lying about your financial standings, or if you are hiding assets from the bankruptcy court. Under the new 2005 bankruptcy law, your bankruptcy case can be closed without a discharge if you failed to complete the credit counseling courses.
Can a creditor affects the outcome of the bankruptcy discharge?
During the 341 meeting, or 30-45 days after the 341 meeting, the creditors you have listed in the bankruptcy petition can challenge your bankruptcy discharge. The creditors will have to submit to the bankruptcy court supporting evidence to justify their claim that the debt that you owe to them should survive the bankruptcy. Even if the bankruptcy court finds the creditor’s claim valid, you have one debt survive the bankruptcy process while the remainder debt can be discharged.
If you have been denied a discharge (not due to fraud), the debts that you have listed in the bankruptcy filing will never ever be dischargeable in any bankruptcy case.