In filing for bankruptcy, an individual or business approaches the court with a full record of their finances, both debts and assets, and asks the courts for help in satisfying the debt. If all guidelines are met, then the court will make a ruling to discharge unsecured debt such as medical bills, or any debt that isn’t backed by the value of some asset.
An objection to discharageability is a legal term used the bankruptcy courts to define a trustee’s or creditor’s objection to the debtor being released from personal liability for certain dischargeable debts. Alternatively, an objection of discharageability occurs when the creditor alleges that a debtor is attempting to discharge debt that was incurred by false pretense or because of fraud. In these events, the court must look at why, when, and how a debt was taken on, and if the debtor initially intended to pay the money back, or was simply trying to take on more debt with the knowledge that they would file bankruptcy.
In these cases, either the bankruptcy trustee or the actual creditor has the right to file a disagreement as to why the debt should still be paid by the debtor. Reasons for an objection to discharageability for ALL debts include perjury, transferring of assets, lying, failure to produce records, or destruction of assets. There are a number of reasons defined in the bankruptcy code that outline what can prevent INDIVIDUAL debts from being discharged and these include receiving a previous chapter 7 bankruptcy discharge less than eight years ago, owed back federal and state income taxes, charges made on a credit card over $675 with 90 days of filing for bankruptcy, or obtaining debt using false information.
There are several other grounds for objections to a debt discharge. If you feel that bankruptcy is the debt relief you need, it always a smart idea to talk with a qualified attorney. The bankruptcy courts have strict guidelines on how soon debt can be obtained prior to bankruptcy. Additionally, before you pay back any debts prior to bankruptcy, an experienced bankruptcy lawyer in Dayton OH should be consulted.