Chapter 7 Bankruptcy Discharge

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