If you plan to file for bankruptcy, you will likely seek a discharge from the court. When a discharge is ordered, it means you no longer have to pay specific debts.
While this is beneficial, there are situations where the court may deny the discharge.
Why the court may refuse a discharge
The court must have a compelling legal reason to deny the discharge. One reason this happens is improprieties by the debtor. This includes things like lying to the court or attempting to hide assets. Along with having the bankruptcy discharge denied, you may face other legal actions if this occurs, such as a lawsuit from a creditor.
This situation may arise if you fail to communicate with the bankruptcy trustee. Missing mandatory Chapter 13 payments and offering no explanation may also lead to issues with the discharge.
Sometimes, statutory reasons can result in a denial. An example is if you are filing a subsequent bankruptcy. In this case, it is required for a certain number of years to pass before doing this. If the timeframe has not passed, then you cannot file again.
Dealing with bankruptcy-related issues
Most people get through bankruptcy proceedings without a hitch – but that’s because they take the time to get experienced legal guidance and carefully discuss the particulars of their case before they file. As long as you understand the expectations on you and follow the rules, you should have no problem.
Knowing your legal rights and options in this situation can help you get the results you need to secure bankruptcy discharge.