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JANUARY 25, 2022


ALL ABOUT ORDER RECENT CASES (2004-PRESENT) – US BANKRUPTCY FILES


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Lenders need to ask the court to identify that these financial obligations are
excepted from discharge. In the lack of an affirmative demand by the financial
institution and the granting of the demand by the court, the kinds of debts set
out in areas 523(a)( 2 ), (4 ), and (6) will be released. A somewhat wider
discharge of financial obligations is readily available to a debtor in a chapter
13 case than in a chapter 7 case.

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Although a chapter 13 debtor normally gets a discharge just after completing all
payments required by the court-approved (i. e., “confirmed”) payment plan, there
are some limited circumstances under which the debtor may ask for the court to
approve a “hardship discharge” despite the fact that the debtor has actually
failed to complete plan payments.

The scope of a chapter 13 “hardship discharge” is comparable to that in a
chapter 7 case with regard to the kinds of debts that are excepted from the
discharge. A difficulty discharge also is offered in chapter 12 if the failure
to complete strategy payments is because of “scenarios for which the debtor
should not justly be held responsible.” Does the debtor deserve to a discharge
or can creditors challenge the discharge? In chapter 7 cases, the debtor does
not have an absolute right to a discharge.

trustee. Lenders get a notification shortly after the case is filed that state
much essential information, including the deadline for objecting to the
discharge. To challenge Check For Updates , a lender must file a complaint in
the insolvency court before the deadline set out in the notification. Submitting
a complaint begins a claim referred to in insolvency as an “adversary
proceeding.” The court may reject a chapter 7 discharge for any of the reasons
explained in section 727(a) of the Bankruptcy Code, including failure to offer
asked for tax documents; failure to finish a course on individual financial
management; transfer or concealment of property with intent to hinder, delay, or
defraud lenders; damage or concealment of books or records; perjury and other
fraudulent acts; failure to represent the loss of properties; violation of a
court order or an earlier discharge in an earlier case commenced within
particular time frames (discussed below) prior to the date the petition was
filed.