A successful bankruptcy case gives you a Chapter 7 Bankruptcy Discharge of debts. Chapter 7 is designed for the debtor who is deeply insolvent and wants to be released from these debts in order to get a “fresh start.” Bankruptcy law allows an individual to seek a DISCHARGE once every eight years.
Most Chapter 7 debtors today are primarily concerned about burdensome credit card debts. It is not uncommon to see Chapter 7 cases for individuals that have credit card debts exceeding their annual income. Sometimes double or even triple what their annual income may happen to be. For such individuals, Chapter 7 holds out the promise of gaining relief from those debts and getting a fresh economic start.
As you will see, a Chapter 7 debtor will be allow to keep (protect) some property, but not all; and the debtor must be honest and open about their property and financial dealings or else there will be bad consequences. Some decisions for Chapter 7 debtors will be difficult but important. These include which secured property to hold on to such as a home or other mortgaged real estate or a car that is necessary for work, but expensive. And there may be some debts that a debtor will not be allowed to DISCHARGE (such as student loans, some taxes, or debts incurred by bad acts.)
When will a Chapter 7 Bankruptcy Discharge be denied?
Sometimes, a discharge might be denied. For example there are certain bad acts that can cost you the right to have a chapter 7 bankruptcy discharge. Examples include lying to the court; concealing assets; failing to disclose all assets; failure to give a good account for the loss or disappearance of valuable assets; and failing to cooperate with the bankruptcy trustee. However, actions seeking the denial of a discharge are rare. The process involves the filing of a Comlaint and proceeds through the bankruptcy court.