It is uncommon but not unheard of –being denied a bankruptcy discharge. Most clients will never have to worry about discharge denial. A more everyday problem for filers tends to be worrying about non-dischargeable debts which is an altogether different beast.
Being denied a discharge means that you remain liable for all of your debts. Creditors can pursue actions against you to collect those debts including, but not limited to, wage garnishments and the repossession of property as well as starting up those nasty calls and letters again.
What can keep you from being granted a discharge?
Most of what can keep a debtor from discharge has to do with purposefully deceiving the Court, the trustee, or creditors. When a debtor signs their bankruptcy petition and schedules, they are signing these documents under penalty of perjury. All financial information must be honest and correct to the best of the filer’s knowledge.
Mistakes are, of course, often made and forgivable. These inaccuracies can be quickly dealt with and fixed with no need to worry.
If a debtor gives information that is purposefully incorrect or deceitful that is an instance that can lead to a denial of bankruptcy discharge, having a discharge revoked, or can even lead to legal proceedings against the debtor for bankruptcy fraud.
Examples of this can be removing or transferring property to defraud a creditor, making false claims, withholding financial information, falsifying or destroying financial records, or failing to cooperate with the bankruptcy trustee.
What it boils down to is that honest and full disclosure with your bankruptcy attorney is going to get you an easy and swift discharge.
Most debtors will never have to worry about a denial of discharge but the key is to always, always communicate openly with your bankruptcy attorney to ensure that everything goes smoothly!
Work with MN’s most EXPERIENCED bankruptcy law firm by requesting a bankruptcy consultation with a Kain & Scott attorney at www.kainscott.com.