Objecting to a Bankruptcy Discharge

There are several different grounds to object to a bankruptcy discharge such as, Destruction, Transfer or concealment of property, the debtor is not an individual (corporations cannot get a discharge), any unjustified failure to keep financial books or records, Dishonesty in connection with the case, Refusal to obey a court order and a prior discharge in a chapter 13 bankruptcy within the last 6 years (or 8 years from when a prior chapter 7 was commenced and discharged).

Essentially, the US Trustee, Bankruptcy Trustee or a creditor may object before 60 days after the first date set for the meeting of creditors.  If an objection is granted the consequences are quite high.  All non-exempt property can be used to pay off the creditors and the creditors can still go after property acquired after the bankruptcy was filed to satisfy the debt.  There is a very high standard that needs to be satisfied for this objection to survive but a good lawyer can see any such objection before it arises and make sure that this does not happen.  If you would like a free consultation please contact my office at 212-244-2882.