South Florida Bankruptcy Lawyer

Creditor Objection to Discharge

When an individual files for Chapter 7 bankruptcy, it is often a good option because it means that they will not have to repay some or all of their outstanding debt. For this same reason, creditors are wary of individuals who apply for Chapter 7 because it means that they will not be fully compensated for the outstanding debt that they would have otherwise received.

To protect against abuses of the bankruptcy system, creditors are allowed to object to the discharge of debt for the borrower. If there were no checks and balances to counteract the power of the Chapter 7 filing, then creditors would be in a vulnerable position. After an individual files for bankruptcy, there is a relatively short period, typically between 60 and 90 days, in which the creditor can object to the bankruptcy.

A creditor would object when they feel that the debtor is trying to commit fraud or the borrower has done something that should preclude them from the protection of Chapter 7. The goal of the objection would be to hold the borrower accountable for a specific debt.

After the deadline has passed for the creditor to object to the discharge, they are still technically able to object to the bankruptcy, if they find new evidence of misconduct on the part of the debtor, but their chances of success decrease dramatically.

Contact Us

For any issues surrounding the legalities of your financial situation, or for information about bankruptcy, contact the Boca Raton bankruptcy attorneys of Eric N. Klein & Associates, P.A. at 561-353-2800.