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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When you file for bankruptcy protection, a discharge from the court will relieve you of your obligation to repay your creditors for certain debts. As noted, once your debt is discharged, your creditors cannot contact you or attempt to collect the debt in any way.
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 burden then shifts to the debtor to object to the claim. The debtor must introduce evidence to rebut the claim's presumptive validity. If the debtor carries its burden, the creditor has the ultimate burden of proving the amount and validity of the claim by a preponderance of the evidence.
Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts.
The Supreme Court unanimously ruled that a woman could not use protection under the U.S. bankruptcy code to avoid paying a debt that resulted from fraud by her partner. The court said that the California woman, Kate Bartenwerfer, owed the debt even if she did not know or could not have known about her partner's fraud.
Debt due to another person's fraud can't be discharged in bankruptcy. Neither can these bills. While the number of personal bankruptcies remains relatively low, it has climbed 19.3% over the last year.
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; ...
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.