The decree of the bankruptcy court which terminates the bankruptcy proceedings is generally a discharge that releases the debtor from most debts. A bankruptcy court may refuse to grant a discharge under certain conditions.
Florida Complaint Objecting to Discharge by Bankruptcy Court on the Grounds that Transaction was Induced by Fraud Regarding Debtor's Financial Condition
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Chapter 7 - In a Chapter 7, Debtors are permitted to retain certain "exempt" property, while the remaining assets are liquidated by the trustee. The trustee will distribute the funds from the liquidation to holders of claims (creditors) in ance with the provisions of the Bankruptcy Code.
An Objection to Discharge is a motion by a creditor to a bankruptcy court asking the court not to discharge a person's specific debt owed to that creditor. If the court grants the motion, the debt is not discharged in bankruptcy and remains due.
Types of debt that cannot be discharged in bankruptcy include alimony, child support, and certain unpaid taxes. Other types of debt that cannot be alleviated in bankruptcy include debts for willful and malicious injury to another person or property.
In the United States, about 10 percent of bankruptcy filings involve fraudulent claims. The four most commonly encountered fraud schemes are concealment of assets, petition mills, multiple-filing schemes, and bust-out schemes.
The debt is excepted from discharge if it was not scheduled in time to permit timely action by the creditor to protect his rights, unless the creditor had notice or actual knowledge of the case.
The most common types of nondischargeable debts are certain types of tax claims, debts not set forth by the debtor on the lists and schedules the debtor must file with the court, debts for spousal or child support or alimony, debts for willful and malicious injuries to person or property, debts to governmental units ...
Another exception to Discharge is for fraud while acting in a fiduciary capacity, embezzlement, or larceny. Domestic obligations are not dischargeable in Bankruptcy. Damages resulting from the willful and malicious injury by the debtor of another person or his property, are also not dischargeable in Bankruptcy.
An Objection to Discharge is a motion by a creditor to a bankruptcy court asking the court not to discharge a person's specific debt owed to that creditor. If the court grants the motion, the debt is not discharged in bankruptcy and remains due.