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DOES THE DEBTOR HAVE THE RIGHT TO A DISCHARGE OR CAN CREDITORS
OBJECT TO THE DISCHARGE?
In chapter 7 cases, the debtor does not have an absolute
right to a discharge. An objection to the debtor’s
discharge may be filed by a creditor, by the trustee in the
case, or by the United States trustee. Creditors receive
a notice shortly after the case is filed that sets forth
much important information, including the deadline for objecting
to the discharge. A creditor who desires to object to the
debtor’s discharge must do so by filing a complaint
in the bankruptcy court before the deadline set out in the
notice. Filing of a complaint starts a lawsuit referred to
in bankruptcy as an “ adversary proceeding.” A
chapter 7 discharge may be denied for any of the reasons
described in section 727(a) of the Bankruptcy Code, including
the transfer or concealment of property with intent to hinder,
delay, or defraud creditors; destruction or concealment of
books or records; perjury and other fraudulent acts; failure
to account for the loss of assets; violation of a court order;
or an earlier discharge in a chapter 7 or 11 case commenced
within six years before the date the petition was filed.
If the issue of the debtor’s right to a discharge goes
to trial, the objecting party has the burden of proving all
the facts essential to the objection.
In chapter 12 and chapter
13 cases, the debtor is entitled to a discharge upon completion
of all payments under the plan. The Bankruptcy Code does
not provide grounds for objecting to the discharge of a
chapter 12 or chapter 13 debtor. Creditors can object to
confirmation
of the repayment plan, but cannot object to the discharge
if the debtor has completed making plan payments.
Back to Frequently Asked Questions - Discharge
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