The bankruptcy process is undoubtedly stressful; however, the accomplishment of eliminating your debt is a very rewarding feeling.  While many Chapter 7 and Chapter 13 bankruptcy proceedings result in a complete discharge of debt, there are situations where some creditors object to either the discharge of one particular debt, or the discharge of all of an individual’s debt.  The reasons why creditors object to the discharge of certain debt often are due to the fact that once a bankruptcy proceeding is over, the creditor can no longer seek to recover any unpaid debt.

Objecting to the Discharge of Debt in Chapter 7 Bankruptcy

Chapter 7, or “liquidation” bankruptcy, is much quicker than other types of bankruptcies in that debt may be discharged within less than one year.  This attractive method of eliminating debt makes it possible to discharge debt without the fear that a creditor will come after the debtor later on.  When a creditor disagrees with the discharge of any particular debt (or all of it), that creditor must formally object within sixty (60) days after the meeting of the creditors where the discharge of debt is discussed.   

There are a variety of reasons why a creditor may object to the discharge of a particular debt.  Perhaps the creditor believes the amount of debt to be discharged is not accurate, or the creditor may believe the debtor has committed some act of wrongdoing that makes the discharge of a particular debt unlawful and/or unwarranted.  If a creditor objects to the discharge of all debt, it typically does so in cases where it is believed that the debtor has committed perjury or otherwise been untruthful, or the debtor has failed to disclose all debts and any available assets, among other reasons.

Objecting to the Discharge of Debt in Chapter 13 Bankruptcy

If a creditor wants to object to the discharge of debt in a Chapter 13 bankruptcy, the process for formally objecting is substantially the same as the process for objecting to discharge of debt in a Chapter 7 bankruptcy.  When it comes to Chapter 13 or “repayment plan” bankruptcy, any objections to the discharge of debt by a creditor may have more to do with the debtor’s failure to stick to the bankruptcy court’s approved repayment plan.  Also, if a debtor has failed to keep updated financial records, failed to disclose assets, or has otherwise been untruthful, among other reasons, a creditor may choose to object to the discharge of a single debt, or all debt.

Given that there are so many variables involved with the bankruptcy process, and there is always the possibility that a creditor may object to the discharge of debt in a particular bankruptcy proceeding, it is important that you have a strong advocate to represent your rights and interests.

Contact Kansas City Bankruptcy Attorney Douglas Breyfogle Today to Schedule a Free Consultation

Whether you are currently in the bankruptcy process, or are considering bankruptcy as a means of eliminating your debt, it is imperative that you have a thorough understanding of what to expect from the beginning stages to the end.  While the ultimate goal of bankruptcy is to discharge all debt, many consumers continue to face a battle when creditors object to the discharge of certain debt for a variety of reasons.  Because bankruptcy can be a complicated process, you should consider how a Kansas City Bankruptcy Attorney may be able to help you.  With more than twenty years of experience, Kansas City Bankruptcy Attorney Douglas Breyfogle handles bankruptcy and debt-related matters on a daily basis, helping Kansas City residents eliminate debt once and for all.  To determine what steps you need to take to get your finances on track, contact Douglas Breyfogle today by calling (913) 742-8700 to schedule your free consultation.