Resolving a Creditor’s Dischargeability Objection: an Example
Here's an example showing in a practical way what happens when a creditor objects to the legal write-off of a debt in bankruptcy.
Going to Trial on a Nondischargeability Dispute with a Creditor
The trial, almost always in front of a bankruptcy judge and no jury, is the final determinator whether the challenged debt gets discharged.
The Procedure to Determine whether a Debt Should be Discharged
If you decide not to settle but rather fight a creditor trying to make you pay a debt that you want to discharge, here's what happens.
Options for Dealing with a Nondischargeability Complaint
If a creditor objects to you writing off --discharging--a debt in a Chapter 7 bankruptcy on grounds of fraud, here are your practical options.
A Challenge to the Discharge of All Debts
A creditor or a bankruptcy trustee could potentially object to the discharge--legal write-off--of ALL your debts. Very rare, and preventable.
Assets Recently Sold or Given Away
Your assets can include property and possessions that you have sold or given away before filing bankruptcy.
Reasons Creditors Ask for Relief from the Automatic Stay
A creditor might ask to pursue an insurance-paid claim or to finish a lawsuit determining if you incurred the debt through fraud.
Criminal Debts Not Discharged in Bankruptcy
Bankruptcy can't discharge--permanently write off--criminal debts, but it can still help in indirect but potentially game-changing ways.
Debts Not Discharged in Chapter 7 Bankruptcy
Most debts can be discharged--permanently eliminated--in bankruptcy. Here are the exceptions.
New Thresholds for a “Luxury” Purchase or Cash Advance to Be Presumed Fraudulent
Creditors will be a little less likely to challenge the writing off of recent uses of credit.
Consumer Warning: A Scam Targeting Bankruptcy Filers
Watch out for phone calls seemingly from somebody you think you should trust with reliable sounding information, requesting fast money.
Bankruptcy Timing and the Holidays: Gift-Giving and “Fraudulent Transfers”
Gift-giving, or selling for much less than actual value, can cause problems ahead of bankruptcy, but only if it's a large gift.
Making Sense of Bankruptcy: Debts That Are Not Discharged (Written off) in a Chapter 7 Bankruptcy
Start by assuming that debts are written off in bankruptcy, while knowing that there are some important exceptions that may apply to you.
Making Sense of Bankruptcy: Potential Concerns about Recent Sales, Transfers and Gifts
To discourage disposing of assets before bankruptcy, a trustee can potentially undo a prior transaction in order to benefit all creditors.
Making Sense of Bankruptcy: The Role of Honesty
Bankruptcy works largely on the honor system. Actually it's closer to a "trust, but verify" system.