Top 7 Reasons Your Debts Won’t Be Discharged in Bankruptcy

One of the things that I get asked in almost all bankruptcy consultations is whether or not I think there’s any chance that someone will keep one of my clients from having her debts discharged.

While having the trustee, US Trustee, or creditor object to someone’s bankruptcy is not out of the question, it is fairly rare.  But it can happen, especially if someone has not completely disclosed all of their assets or transfers of any property. I have one fundamental rule: disclose, disclose, disclose.  If you don’t, you can be sure someone will find out about it.

Here are the top 7 reasons why your debts won’t be discharged in bankruptcy:

1. If the debtor has intentionally transferred or concealed assets in order to prevent creditors from obtaining access to them in bankruptcy.
2. If the debtor has concealed, destroyed, mutilated, falsified, or failed to keep or preserve any recorded information concerning her finances.
3. If the debtor perpetrates a fraud on the bankruptcy court by making a false oath, presenting false claims, gives or takes bribes, or withholds records.
4. If the debtor fails to explain a loss or deficiency of assets.
5. If the debtor refuses to obey court orders or to testify.
6. If the debtor has received a discharge under Chapter 7 within 8 years of filing their present case or under Chapter 13 within 6 years of their present case.
7. If the debtor fails to complete the personal financial management course.

As long as you avoid these problems, you can expect the court to give you your discharge order about 90 days after your Chapter 7 bankruptcy petition is filed or soon after you make your last payment in your Chapter 13 bankruptcy.

If you have any questions about the bankruptcy process and whether any of your debts will not be discharged by the Colorado bankruptcy court, we hope you’ll come in for a free, no-obligation consultation with an experienced bankruptcy attorney. You can make an appointment by using our online scheduling system or by calling 303.331.3403 to set up a time that is convenient for you.