BANKRUPTCY CODE SECTION 523 - No Discharge of Certain Debts

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A Creditor can object to the discharge of individual debts in a chapter 7.  Certain debts are not dischargeable under section 523 of the Bankruptcy Code.  These include but are not limited to  1) Debts for certain taxes,  2) debts arising from false pretenses, false representation, actual fraud or false financial statements 3) debts for certain lixury goods and cash advances 4) debts that a debtor fails to list in the bankruptcy schedules 5) debts arising from fraud, embezzlement or larceny 6)  debts for spousal or child maintenance and other obligations arising out of a divorce proceeding, 7)  student loans 8) restitution orders 9) debts arising from willful and malicious injury 10) certain condo or cooperative fees incurred after filing 11) obligations arising from death or injury caused by dui

When the debt is excepted from the discharge the debtor remains liable.

Please contact an experienced debt attorney if you are considering bankruptcy as a result of one of these types of debts.  You may be wasting your time. 

FRAUD ON THE BANKRUPTCY COURT

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A creditor or the bankruptcy trustee has the authority to object to the overall discharge of the a consumer bankruptcy case if they believe that the debtor has committed fraud on the court.  Generally the fraud in question means that the debtor has been dishonest, uncooperative, or has destroyed or hidden property of the estate.  If there is no discharge than the most common purpose for filing the case is thwarted, i.e. no discharge of the debt.  The debtor remains responsible for the debt and the creditors get the green light once again to pursue collection.  The bankruptcy stays on the credit report and the money spent to plan and file the case is wasted. 

Before a bankruptcy is filed, the debtor must be prepared to produce all information and documentation regarding his or her assets, debts and income, and as I tell my clients they may need to answer the same questions more than once.

Make sure that you use an attorney when you file a bankruptcy and that you provide that attorney with everything.