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Why Would a Court Not Discharge a Chapter 7 Bankruptcy? 

 Posted on June 05, 2023 in Bankruptcy

b2ap3_thumbnail_shutterstock_512139235-min.jpg Bankruptcy is an essential financial protection that allows eligible individuals to get out from under the thumb of crushing, unmanageable debt. While declaring bankruptcy does have a significant effect on your credit score, it can also make a world of difference in your quality of life and allow you to start fresh. However, many people who file for Chapter 7 bankruptcy may be surprised to learn that a bankruptcy court could decide not to discharge a case, even after the debtor meets with the trustee and her creditors. To learn more about why a Chapter 7 bankruptcy might not be discharged, read on. 

Reasons a Chapter 7 Bankruptcy May Be Denied

When someone files for bankruptcy, she must provide the bankruptcy court with a full and honest accounting of her financial situation. This includes the debtor’s creditors and the amount and nature of each debt, the debtor’s income and its source, the debtor’s property, and the debtor and her family's living expenses. 

A crucial part of the bankruptcy process is the meeting of creditors. During the meeting, the trustee assigned to a case will ask questions of the debtor to probe the accuracy of the debtor’s statements and her understanding of the bankruptcy process. The debtor’s creditors will then have an opportunity to speak to the debtor and the trustee. 

If the trustee does not have enough information from the debtor or has doubts about the accuracy of the debtor’s information, he may request more information. More often than not, a debtor has her bankruptcy request denied because she does not comply with the rules and procedures that allow a case to be discharged. This might include actions such as hiding property, destroying records, failing to provide information, not attending the meeting of creditors, filing too frequently within a short period of time, not completing the mandatory instructional debt avoidance course, and more. 

How Does An Attorney Help With Chapter 7 Bankruptcy? 

Having an attorney to assist you throughout the Chapter 7 bankruptcy process can help you avoid small mistakes that could prevent a case from being discharged. An attorney can help you gather the information you need, remind you of your meeting of creditors, and be by your side during the meeting to help you answer questions. People who have the help of an attorney are more likely to get their bankruptcy cases discharged and to get the fresh start they need.  

Contact a Kane County Chapter 7 Bankruptcy Attorney 

If you are wondering whether a Chapter 7 bankruptcy could help you overcome the burden of debt, schedule a comprehensive consultation with the experienced McHenry County bankruptcy attorney at the Thomas Law Office. We will review your case honestly, answer your questions clearly, and will never pressure you into taking action that you are uncomfortable with. Call us today at 847-426-7990.   



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