Why Was My Bankruptcy Discharge Denied?

If you filed for personal bankruptcy on your own—i.e., without help from an experienced bankruptcy lawyer—you could find yourself in a situation in which your bankruptcy discharge is denied. Given that consumer bankruptcy may be your only option for managing your debt and finding a way to get back on track financially, learning that your debts will not be discharged can be devastating. In some cases, the court might not discharge debt due to an error you made at some point during your bankruptcy case—from providing incorrect information unintentionally to failing to take one of the required steps in a bankruptcy case. In other situations, it could be that your debts are not dischargeable under the U.S. Bankruptcy Code. In other scenarios, the bankruptcy court might believe you engaged in bankruptcy fraud, in which case you could be facing additional penalties or legal problems beyond simply not getting your debt discharged.

No matter what the cause, you should seek advice as soon as possible from an Oak Park bankruptcy attorney who may be able to help. In the meantime, the following information provides information about situations in which a debtor could be denied a discharge in a bankruptcy case.

You Failed to Report Property

If you did not accurately report your property, including all of the assets you own, the court will not discharge your debts.

You Failed to Provide Required Documents

There are so many different documents that you must produce in a bankruptcy case, from materials related to your bankruptcy petition to schedules and pay stubs. If you failed to provide the documents required by the bankruptcy court, you may be ineligible for a discharge.

You Hid or “Gifted” Property to Avoid Liquidation

Any time a debtor attempts to conceal or “gift” property for purposes of avoiding its liquidation in a Chapter 7 bankruptcy case, that debtor will not be eligible for a discharge. In addition, the debtor could face additional consequences related to bankruptcy fraud.

Your Bankruptcy Documents Contained Inaccurate Information

Like we mentioned above, there are a wide variety of documents that need to be submitted in a bankruptcy case. If you made an error and provided inaccurate information, you could risk your discharge. If you provided inaccurate information intentionally, beyond losing your bankruptcy discharge, you could be at risk of bankruptcy fraud charges.

You Did Not Tell the Court About a Previous Bankruptcy Case

You need to disclose previous bankruptcy cases, and depending upon the type of bankruptcy you are seeking, a certain amount of time must have passed before you are eligible for bankruptcy again.

Your Debts are Not Dischargeable

Some debts simply are not dischargeable in a bankruptcy case. For instance, alimony and child support are never dischargeable, and some tax debts are not dischargeable. If your debts are non-dischargeable, you should not anticipate a bankruptcy discharge.

You Failed to Complete Credit Counseling Course Requirements

Bankruptcy requires a debtor to attend credit counseling courses at two different points in the bankruptcy process. Failing to attend one or more can have negative consequences.

Contact an Oak Park Bankruptcy Lawyer for Assistance

Depending upon the particular circumstances of your case, you may still be eligible for a bankruptcy discharge. One of our experienced Oak Park bankruptcy attorneys can evaluate your case and discuss your options. Contact the Emerson Law Firm to learn more about how we can help.


See Related Blog Posts:
What Does a Trustee Do in a Bankruptcy Case?
Top Reasons to Hire a Lawyer for Your Bankruptcy Case

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