Live Chat Software

Call us Today to Set Up A
Free Case Evaluation

Call Us Today To Set Up
A Free Case Evaluation

Levitt & Slafkes, P.C. - Essex County Bankruptcy Attorneys

Get The Fresh Start You Deserve

Levitt & Slafkes, P.C. - Essex County Bankruptcy Attorneys
GET THE FRESH START YOU DESERVE

Bankruptcy &
Debt Relief For
Individuals and
Businesses

Chapters 7, 11
and 13

FIND OUT MORE

Foreclosure
Defense &
Mortgage
Litigation

Saving Homes
Fighting Banks

FIND OUT MORE

Loan
Modifications

Preventing
Foreclosure

FIND OUT MORE

Commercial and 
Bankruptcy
Litigation

State Federal &
Bankruptcy Court

FIND OUT MORE

Bankruptcy & Debt Relief For
Individuals and Businesses

Chapters 7, 11 and 13

Find Out
More

Foreclosure Defense &
Mortgage Litigation

Saving Homes Fighting Banks

Find Out
More

Loan Modifications

Preventing Foreclosure

Find Out
More

Commercial and Bankruptcy
Litigation

State Federal &
Bankruptcy Court

Find Out
More

Why Would a Court Deny Bankruptcy Discharge?

| Apr 9, 2018 | Bankruptcy Basics, Chapter 13 Bankruptcy, Chapter 7 Bankruptcy |

No matter what you have read online, the decision to pursue bankruptcy proceedings is a deeply personal one and is not a one-size fit all solution for everyone. In fact, bankruptcy proceedings can be complicated and may not turn out the way you hope. This is why it is necessary to consult with a knowledgeable and experienced attorney to consider your circumstances and help you weigh your options.

What is Discharge?

Chapter 7 bankruptcy involves the liquidation of a debtor’s assets with the proceeds going toward paying off debts. The bankruptcy code establishes what assets are subject to liquidation and the priority with which debts are treated. In most Chapter 7 cases no assets are actually liquidated. The ultimate goal of bankruptcy is to obtain a “discharge in bankruptcy”. This is an order from a bankruptcy court that legally absolves debtors of specific types of debts, which creditors are thereafter barred from collecting in the future.

What Circumstances Could Result in a Denial of Discharge?

Under the Bankruptcy Code Section 727(a), a court is required to grant the debtor a discharge; however, there are exceptions to this, such as when it is found that a debtor has:

· “transferred, removed, destroyed, mutilated, or concealed property” with an “intent to hinder, delay, or defraud a creditor”, or has authorized such an action;

· “concealed, destroyed, mutilated, falsified, or failed to keep or preserve” records which could have been used to ascertain the debtor’s financial condition;

· made certain fraudulent claims, acts, or omissions in association with the bankruptcy proceedings;

· failed to explain to the court’s satisfaction any loss or deficiency of assets to pay off liabilities;

· failed to obey a lawful order of the court or to answer a material question approved by the court; or

· been granted a discharge from Chapter 7 bankruptcy within the last 8 years.

Underlying these exceptions is the requirement that a debtor be truthful to the court and operate in good faith. Failure to do so can undercut a debtor’s entire purpose for seeking bankruptcy relief. To make matters worse, even if a court denies discharge, a trustee can continue to sell the debtor’s assets to pay off creditors.

You Need an Attorney to Defend Your Legal Rights

Bankruptcy cases are serious and incredibly complicated legal proceedings. At Levitt & Slafkes, P.C., we appreciate the gravity of these proceedings to your financial future and your life. With over thirty years of experience, we know the law and take pride in getting things right the first time. Let us help you attain some much needed debt relief. Call our office at (973) 323-2953, or contact us online to schedule an appointment.

We are proudly designated as a debt relief agency by an Act of Congress. We have proudly assisted consumers in filing for Bankruptcy Relief for over 30 years.

Archives