The goal of bankruptcy is to receive a Bankruptcy Discharge Order from the bankruptcy court. Your bankruptcy discharge is the court order that releases you from personal liability on certain debts. You are no longer legally obligated to pay back any debts that are part of your bankruptcy discharge.
When the Bankruptcy Court May Deny Discharge
The Bankruptcy Discharge Order is issued by the bankruptcy court at the end of a successful bankruptcy case. However, there are instances when the bankruptcy court may deny discharge.
Denial of Chapter 7 Discharge
The court may deny a chapter 7 discharge for any of the reasons described in section 727(a) of the U.S. Bankruptcy Code. Reasons to deny discharge include: transfer or concealment of property with intent to hinder, delay, or defraud creditors; perjury and other fraudulent acts; failure to account for the loss of assets; failure to provide requested tax documents; destruction or concealment of books or records; violation of a court order; an earlier discharge in an earlier case commenced within a certain time frame before the date the current petition was filed; and failure to complete the mandatory course on personal financial management. 11 U.S.C. §727(a).
Denial of Chapter 13 Discharge
Generally, the debtor is entitled to a discharge upon completion of all Chapter 13 plan payments. However, as with Chapter 7, the bankruptcy court may deny discharge to a Chapter 13 debtor for failure to complete a course on personal financial management. Also, a debtor is ineligible for a discharge in chapter 13 if he or she received a prior discharge in another bankruptcy case too soon before the date the subsequent bankruptcy petition was filed.
If the bankruptcy court finds a reason to deny discharge, then it will issue a Dismissal Order. A bankruptcy dismissal ends your bankruptcy case and you will still be legally obligated to pay back the debts you owed prior to filing for bankruptcy.
Having a bankruptcy case dismissed may put you in a worse situation than you were in before you filed. If your case is dismissed, your creditors are legally allowed to resume collection actions against you. This means wage garnishments, bank levies, foreclosure proceedings, repossessions, and even collection phone calls can come back to life.
We Are Here to Help You Get Out of Debt
When you hire the Law Office of Barbara B. Braziel, you are hiring experienced bankruptcy attorneys with over 35-years of successful bankruptcy filings. We file hundreds of successful Chapter 7 and 13 bankruptcy cases every year.
Together we will work through the bankruptcy petition. Prior to filing, you will review your entire bankruptcy petition to ensure that is it complete and accurate. We will prepare you for the bankruptcy 341 Hearing so you feel confident in answering the Trustee’s questions honestly and accurately. The experienced attorneys at The Law Office of Barbara B. Braziel are committed to making the bankruptcy process as smooth as possible for all of our clients.
We’re located in the Savannah, GA area. Contact us for a free consultation to discuss the benefits of filing for bankruptcy.
Reach out to us by email at info@BrazielLaw.com or call (912) 351-9000.
We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.