When a Bankruptcy Discharge is Denied

Most debtors seeking to have debt eliminated or discharged may have the
action granted by the bankruptcy court. Although a discharge can be denied
and in many cases it is due to the debtor doing something they should
have avoided. It is important to note that when a discharge is denied,
it may not necessarily mean the case is dismissed. But, it often depends
on the situation of the debtor as to how the case will proceed.

The bankruptcy court may deny your request to discharge debt when evidence
related to the following is presented:

  • Intention to defraud creditors by concealing or withholding property.
  • Fraudulent acts committed such as destruction or records, perjury, or concealing details.
  • Failure in taking responsibility for loss of assets.
  • Court order violation has occurred.

Any or all debts related to your case could be denied a discharge. Sometimes
the case leads to termination or dismissal, depending on actions carried
out by the trustee. In other words, if your case continues to press forward
the opportunity to discharge your debt may be lost.

Be Honest in Reporting Information About Your Bankruptcy Case

It is important to be honest in reporting information about your case to
your trustee or bankruptcy attorney. If you are denied a discharge in a
Chapter 7 case, it is possible such debts may not be dischargeable in a future filing.
There is the possibility of getting them discharged in a
Chapter 13 bankruptcy. You can review this option with an experienced bankruptcy expert.

Have Any More Questions About Bankruptcy Discharges?

If you happen to have any more questions about the bankruptcy process,
you can contact us by phone or fill out our
contact form
to set up a free consultation.