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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Article I, Section 8, of the United States Constitution authorizes Congress to enact "uniform Laws on the subject of Bankruptcies." Under this grant of authority, Congress enacted the "Bankruptcy Code" in 1978.
The Federal Rules of Bankruptcy Procedure were adopted by order of the Supreme Court on Apr. 25, 1983, transmitted to Congress by the Chief Justice on the same day, and became effective Aug. 1, 1983. The Rules have been amended Aug.
Federal courts have exclusive jurisdiction over bankruptcy cases. The primary purposes of the federal bankruptcy laws are to give a debtor, either a person or a business, a ?fresh start? by relieving the debtor of most debts, and to give the debtor the opportunity to repay creditors in an orderly manner.
Certain types of debt, such as child support, alimony, and most student loans, cannot be discharged in bankruptcy. Wrongful conduct may make some debts non-dischargeable.
If a debt arose from the debtor's intentional wrongdoing, the creditor can object to discharging it. This might involve damages related to a drunk driving accident, for example, or costs caused by intentional damage to an apartment or other property.
The United States Constitution authorizes Congress under Article I, Section 8, Clause 4 with the power to ?establish uniform laws on the subject of bankruptcies throughout the United States." The bankruptcy laws that Congress makes have to be within the scope of federal bankruptcy power.
The court may deny a chapter 7 discharge for any of the reasons described in section 727(a) of the Bankruptcy Code, including failure to provide requested tax documents; failure to complete a course on personal financial management; transfer or concealment of property with intent to hinder, delay, or defraud creditors; ...