Are You Entitled to a Discharge?

§727(a) Court shall grant a discharge unless debtor:

  • Is not an individual; or
  • Transferred or destroyed property of the Estate within a year before filing or any time after filing with intent to hinder, delay or defraud; or
  • Concealed, destroyed or falsified info re financial condition; or
  • Knowingly:
  • made false oath or account;
  • presented or used false claim;
  • gave, offered or received money;
  • withheld information re property et al.
  • Fails to explain loss of assets or inability to meet liabilities;
  • Fails to obey an order of the Court;
  • Received a discharge in a case started 6 years before filing of current Petition.

Basic Discharge Exceptions: Discharge does not absolve the Debtor of debts …

  • For taxes or customs duties;
  • For property or credit obtained by fraud;
  • That are not listed or scheduled;
  • Arising from breach of fiduciary duty.
  • For alimony, maintenance or support;
  • For willful, malicious injury;
  • Is a government fine;
  • For educational loans guaranteed by the government or not-for-profit organization;
  • From a DUI fatality caused by Debtor;
  • That could have been listed in prior case;
  • Arising from fraud in a fiduciary capacity;
  • For failure to pay Federal institution;
  • Taxes to the United States;
  • Others: See §523.
  • In order to contest dischargeability of a particular debt the Creditor must usually file an Adversary
  • Upon obtaining a discharge, §524 extinguishes the debtor’s personal liability and prevents creditors from all forms of collection efforts (the “Discharge Injunction”).
  • Violation of the Discharge Injunction by creditors will subject them to contempt of Court damages.