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.
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.
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To object to the debtor's discharge, a creditor must file a complaint in the bankruptcy court before the deadline set out in the notice. Filing a complaint starts a lawsuit referred to in bankruptcy as an "adversary proceeding."
Objecting to a Discharge Generally This might be appropriate when the debtor lied to the bankruptcy judge or trustee, made false statements on the bankruptcy petition, fraudulently transferred title to property, destroyed property, or disregarded a court order.
A trustee's or creditor's objection to the debtor being released from personal liability for certain dischargeable debts. Common reasons include allegations that the debt to be discharged was incurred by false pretenses or that debt arose because of the debtor's fraud while acting as a fiduciary.
Bankruptcy Rules 4004 and 4007 provide that the deadline for filing a complaint objecting to discharge under Section 727(a) and for dischargeability of a debt under Section 523(c) is sixty (60) days after the first date set for the meeting of creditors.
The procedure when a discharge is opposed When a discharge is opposed the court reviews the details of the opposition. The registrar will then set a time for a hearing. The challenger and the debtor and if desired their lawyers will attend the hearing. The registrar will provide a written decision.
The trustee can object to the discharge of a particular debt or the discharge of all debts. The trustee will usually do this when the trustee suspects fraud, (hiding assets, transferring assets to another, or destroying assets).