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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
- 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.