What Is A Discharge? When Does It Happen In Bankruptcy?
Bankruptcy discharge basically is the vanishing of all the dischargeable debt that someone brings into the bankruptcy case. It is as if that debt and all the emotional baggage had never happened. The creditor then cannot call, send demand letters, report nonpayment of the debt to credit reporting agencies. The creditors can not file a lawsuit against you, or take any other action against you personally in an attempt to collect the debt. When the bankruptcy discharge happens for example in a Chapter 7 bankruptcy case, the process is just over 3 months from the date the case is a file .
Can Creditors Object To The Discharge?
Creditors can object to the discharge and there are several ways that they can do that. A creditor can object to any of your debts is discharged. They usually don’t When they do they file a motion or an adversary proceeding. This is usually something the bankruptcy clients are aware might be a possibility. These proceedings can be objected to by your bankruptcy attorney. The purpose of the adversarial proceeding is to have your whole case thrown out. They will claim, your creditors that this debt that is owed to us should be treated differently than the rest of the debts owed to other creditors. That’s one thing that creditors can do, but it doesn’t happen often or unexpectedly.
What Type of Debt Cannot Be Discharged?
There’s some kind of debts that cannot be discharged in bankruptcy. The most common ones are, spousal support, child support, those are the big ones some tax can not be discharged some tax can. Student loans can be but, that’s a very complex path that needs planning and your options are limited You basically have to be on life support you get bankruptcy help. But the federal government does have some options recently to help with student loans.
The Court can deny your Discharge
If you fail to cooperate with the court or the trustee, are not truthful on the paperwork or in your testimony, fail to turn over assets, the court can deny your discharge. Likewise, if the court learns after the discharge was entered that you committed some act that would have caused the court to deny your discharge during the case, the court can revoke the discharge that it already entered