Denial of Discharge in Chapter 7 Bankruptcy Cases

If you follow the procedures correctly and answer all of the court’s questions truthfully, your chances of discharging your eligible debts in a Chapter 7 bankruptcy filing are high. Depending on your overall financial situation, it might even be able to discharge your eligible debts without liquidating any of your assets. Filing for Chapter 7 bankruptcy is not a slam dunk; however, the possibility remains that the court will deny your request to discharge some or all of your debts. If this happens, you could be in an even worse financial position than you were in before you filed for bankruptcy. In the worst-case scenario, the court could liquidate some of your assets and pay the proceeds to creditors, but you will still owe the remaining balance that the liquidation of your assets did not cover.  

Several parties can file a motion to deny the discharge of your debts during your bankruptcy case; these include the bankruptcy and any of the creditors connected to the debts you are trying to discharge. To maximize your chances of a successful Chapter 7 bankruptcy filing, contact an Oakland Chapter 7 bankruptcy lawyer.

Common Reasons for Denial of Discharge 

These are some common reasons that the bankruptcy courts deny debtors’ requests to discharge their debts in Chapter 7 bankruptcy cases:

• Chapter 7 bankruptcy is only for individuals. If you file on behalf of a company, the court will refuse to discharge the debts.
• It is possible for the same person to successfully file for Chapter 7 bankruptcy more than once, but you must wait at least eight years since your most recent filing before you file again. If you file sooner than that, it can result in a denial of discharge.
• Your records of your income, assets, debts, and spending are not sufficiently detailed. If you cannot account for where some of your money went, the court may suspect you of concealing assets or intentionally dissipating your finances.
• You transfer ownership of property to family members or to businesses so that it will not count as your property for purposes of the bankruptcy case.
• The court requires you to complete a financial management course at the beginning of your bankruptcy case. If you do not complete it, the court may not discharge your debts.
• Likewise, if you disobey any court orders in the context of your bankruptcy case, the result can be a denial of discharge.

How to Prevent a Denial of Discharge

The best way to ensure that you get the most debt relief out of your bankruptcy case is to work with a bankruptcy lawyer before and after you submit the filing paperwork. Your lawyer can help you avoid mistakes and can play devil’s advocate about your financial records so that they will be flawless by the time the court sees them.

Contact the Law Office of Melanie Tavare About Chapter 7 Bankruptcy Cases

A bankruptcy lawyer can help you file for Chapter 7 bankruptcy and avoid denial of discharge. Contact the Law Office of Melanie Tavare in Oakland, California, or call (510)255-4646 for a free case evaluation.