New York Bankruptcy Lawyer FAQ - Can creditors object to
discharge?
Debtors and their bankruptcy lawyers do not have an absolute right to discharge
all debts. Discharge of each specific debt is
subject to court review and subject to all objections filed by creditors, their bankruptcy lawyers, and parties
in interest. All objections must be resolved before a discharge may be granted by the court. Creditors and their
bankruptcy lawyers do not need court approval to file motions objecting to relief or file complaints to initiate
adversary proceedings. An adversary proceeding is similar to a lawsuit, within a lawsuit, that requires adjudication
before the debtor's bankruptcy case may progress.
Creditors and their bankruptcy lawyer's objections are subject to deadlines and are assigned the burden of proof.
In practice, because creditors carry the burden of proof on discharge
issues, doubt is resolved in favor of the debtor. If motion to object
or complaints are filed late, unclear, or unconvincing, relief requested by the debtor will proceed.
The most common reasons which
support a creditor's motion to deny discharge are set forth partially in 11 U.S.C. 523, and include the following:
- Debts incurred through fraud.
- Purchases of more than $1,000 in luxury goods or services from a single creditor within 60 days of filing.
- Liability omitted from the list of creditors or schedules, or incorrectly identified in the list of creditors or schedules.
- Student loans, unless repayment would cause undue hardship.
- Undeclared federal, state, and local taxes.
- Credit card payments for taxes can not be discharged in New York bankruptcy.
- Child support payments, alimony and related obligations.
- Fines and restitution to crime victims.
- Fess imposed by courts can not be discharged in New York bankruptcy.
- Fines and judgments resulting from DWI, DUI, or intoxication.
- Liabilities deemed nondischargeable in previous bankruptcies due to fraud or
malfeasance.
New York Bankruptcy Lawyers In Practice
The majority of personal bankruptcy lawyers certified in
consumer Chapter 7 and Chapter 13 cases offer free initial
consultations. Potential clients may review all options available and
ask any question deemed important. All attorneys are bound by the
attorney client privilege and must zealously guard confidentiality.
Because of recent amendments to new bankruptcy laws, by passage of the
latest reform bill known as the Abuse Prevention Act of 2005, debtors
will find qualification for debt relief somewhat more difficult. Yet
these laws also present new options, alternatives, and means of
discharging debt that were previously unavailable. Now, more than ever,
the assistance of qualified representation before federal courts is
essential to gain maximum benefits provided by law.
Back to New York Bankruptcy Lawyer FAQ content page and bankruptcy lawyer special exceptions. |
