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Chapter 7 Bankruptcy Discharge

This article provides useful, detailed Bankruptcy court issues a discharge
information about Chapter 7 Bankruptcy order 60 days following the first date
Discharge. set for the creditors meeting or nearly
The primary purpose of bankruptcy court four months after the date the debtor
is to discharge certain debts to give a files the petition with the bankruptcy
debtor a fresh start. A bankruptcy court.
discharge releases the debtor from On an average, in 99 out of 100 chapter 7
personal liability for certain specified bankruptcy cases, the court may deny the
types of debts. Discharge prohibits the debtor a discharge if the debtor failed
creditors from taking any form of to obey orders of the bankruptcy court.
collection action against debtors on Debtor\'s failure to produce correct
discharged debts. The bankruptcy financials or failure to explain
discharge varies depending on the chapter satisfactorily any loss of assets or
of bankruptcy a debtor files. Unless actions like transferring, hiding, or
there is lawsuit involving objections to destroying property of the estate may
the discharge, the debtor will usually lead to denial of discharge.
automatically receive a discharge. The debtor gets a discharge for most
In chapter 7 cases, a discharge is not an debts in a chapter 7 bankruptcy case. But
absolute right of the debtor. An all the debts are not discharged under
objection to the debtor\'s discharge may chapter 7 bankruptcy case. Debts for
be filed by a creditor, by the trustee in alimony and child support, certain types
the case. Creditors receive a notice of tax claims, loans assured by a
shortly after the case is filed with the governmental unit, debts for fines and
deadline for objecting to the discharge. penalties and debts due to improper
To object to the debtor\'s discharge, a behavior of the debtor are not
creditor must start a lawsuit called an discharged.
adversary proceeding before the deadline The trustee or the creditors may request
set out in the notice. In a chapter 7 to revoke the debtor\'s discharge in a
bankruptcy, the court usually grants the chapter 7 case alleging the fraudulent
discharge without any delay on expiration behavior of the debtor. The court may
of the time fixed for filing a complaint revoke a chapter 7 discharge if the
objecting to the discharge or the debtor fraudulently obtained the
application for dismissal of the case. discharge.




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