Denial of Chapter 7 Discharge
A debtor's discharge may be denied in chapter 7 on certain grounds.
The Bankruptcy Code provides that the trustee or creditors may file an objection to chapter 7 discharge no later than 60 days after the first date set for the creditors' meeting. This deadline may be extended but is strictly enforced.
One ground is if the debtor transferred or destroyed property within one year before the bankruptcy with the intent to hinder, delay, or defraud a creditor or the bankruptcy trustee. A creditor asserting the intent to defraud bears the burden of proving actual fraudulent intent and mere constructive fraud is not sufficient.
Discharge may also be denied if the debtor knowingly and fraudulently in connection with the bankruptcy case makes a false oath or account. Discharge may be denied if there is an material omission from the debtor's bankruptcy schedules or statement of financial affairs.
The Bankruptcy Code provides that the trustee or creditors may file an objection to chapter 7 discharge no later than 60 days after the first date set for the creditors' meeting. This deadline may be extended but is strictly enforced.
One ground is if the debtor transferred or destroyed property within one year before the bankruptcy with the intent to hinder, delay, or defraud a creditor or the bankruptcy trustee. A creditor asserting the intent to defraud bears the burden of proving actual fraudulent intent and mere constructive fraud is not sufficient.
Discharge may also be denied if the debtor knowingly and fraudulently in connection with the bankruptcy case makes a false oath or account. Discharge may be denied if there is an material omission from the debtor's bankruptcy schedules or statement of financial affairs.