The debtor's goal in a Chapter 7 case is to receive a discharge, meaning that the debtor's personal liability for pre-petition debts is ended. However, certain debts are automatically non-dischargeable in a Chapter 7 case (e.g., debts for alimony, spousal and child support, student loans and certain taxes). Other debts may be found to be non-dischargeable in Chapter 7 (e.g., debts incurred through fraud, embezzlement, larceny, breach of fiduciary duty, willful tort and drunk driving) if the creditor files a complaint by a certain deadline and obtains a judgment of non-discharge ability in the Bankruptcy Court.
The deadline is set forth in the notice of meeting of creditors and is usually 90 days after the petition is filed. If a complaint is timely filed, a trial on will be scheduled and the Bankruptcy Court will decide whether or not the particular debt is dischargeable. If the debtor's pre- or post-petition conduct has been particularly egregious (e.g., he or she has hidden assets, concealed or destroyed records, failed to adequately explain the loss of assets, failed to obey a court order or committed a perjury), the Bankruptcy Code permits either a creditor or the bankruptcy trustee to file a complaint objecting to the discharge of any debts.
If such a complaint is successful, the debtor's assets will still be liquidated, but the debtor will not receive a discharge, meaning that creditors may pursue the debtor for payment of their debts.
The deadline for filing this type of complaint also is usually 90 days after the petition is filed.
RSS
The debtor's goal in a Chapter 7 case is to receive a discharge, meaning that the debtor's personal liability for pre-petition debts is ended. However, certain debts are automatically non-dischargeable in a Chapter 7 case (e.g., debts for alimony, spousal and child support, student loans and certain taxes). Other debts may be found to be non-dischargeable in Chapter 7 (e.g., debts incurred through fraud, embezzlement, larceny, breach of fiduciary duty, willful tort and drunk driving) if the creditor files a complaint by a certain deadline and obtains a judgment of non-discharge ability in the Bankruptcy Court.
The deadline is set forth in the notice of meeting of creditors and is usually 90 days after the petition is filed. If a complaint is timely filed, a trial on will be scheduled and the Bankruptcy Court will decide whether or not the particular debt is dischargeable. If the debtor's pre- or post-petition conduct has been particularly egregious (e.g., he or she has hidden assets, concealed or destroyed records, failed to adequately explain the loss of assets, failed to obey a court order or committed a perjury), the Bankruptcy Code permits either a creditor or the bankruptcy trustee to file a complaint objecting to the discharge of any debts.
If such a complaint is successful, the debtor's assets will still be liquidated, but the debtor will not receive a discharge, meaning that creditors may pursue the debtor for payment of their debts.
The deadline for filing this type of complaint also is usually 90 days after the petition is filed.