Barriers to Discharging Debt in Chapter 7 Bankruptcy

A Richardson Chapter 7 bankruptcy attorney discusses some of the most common barriers to filing for Chapter 7 bankruptcy and discharging debts. The process does not always go smoothly. Sometimes, a party involved in the process will challenge the filing or cause delays in the process for various reasons.

Creditors can sometimes challenge a discharge if special circumstances apply. If the creditors have reason to believe that you have the funds to pay off the debt, then they can challenge the discharge of the debt.

If you used a credit card to purchase luxury goods within the past 90 days or used cash advances in the past 70 days, then the creditors may challenge those purchases as well and expect you to pay for them. If you can prove that you had every intention of paying back the money, then the debt may be able to be discharged.

In addition, if you obtained debt by fraud or injury to another person, then those debts are not dischargeable. Filing bankruptcy paperwork with mistakes or omissions of required information can also lead to delays. Not following court rules and bankruptcy procedures can lead the court to delay your filing and even reject it altogether, even if you otherwise qualify. 

The court also has the option to disallow the discharge of your debt if you fail to provide tax documents or attend a personal financial management course. If you hide assets, destroy records, violate court orders or commit fraud or perjury, then your case can be denied as well. 

If you are in need of a Richardson Chapter 7 bankruptcy attorney, contact the law offices of Warren & Migliaccio, L.L.P. They can help you through the bankruptcy process so that it is handled correctly. Contact them today at (888) 584-9614.