For a lot of people, bankruptcy offers an opportunity to wipe out considerable amounts of consumer debt. There is no limit when filing for Chapter 7, which means you can potentially eject that overwhelming financial burden that’s worn down your shoulders.
With that said, bankruptcy debt discharge isn’t guaranteed. It’s often up to a judge’s discretion whether or not to wipe away debt, and you can count on them to deeply consider whether or not to do so. A factor in that decision can be an objection from your creditors to clear the debt, which can present a considerable roadblock on your path to debt relief.
Two Common Objections to Debt Discharge
Unless you’re dealing with a particularly difficult creditor, there are two main reasons why they might object to a debt discharge.
The first of these reasons is fraud. If a creditor believes you defrauded them to obtain credit (such as lying about your income or other facts to obtain a loan) or that you used their credit to defraud someone else, they are very likely to object to discharge. Not only that, but they’re likely to succeed because debt incurred through fraudulent acts can’t be discharged.
The second reason is bankruptcy abuse. Bankruptcy can provide a fresh start for those experiencing financial hardship, but it’s not a “Get Out of Jail Free” card, so to speak. If your creditor detects luxury purchases or cash advances within 90 days before your bankruptcy filing, you can count on them to object to a discharge of these debts. Creditors are well aware of the risk of bankruptcy abuse and are keen to block any attempts to take the money and run.
How to Deal with an Objection to Your Discharge
Creditors can become aggressively defensive of the debt you owe to them, so you might encounter an objection to debt discharge during your case. Even in situations where the bankruptcy filer did nothing wrong, creditors may try to assertively protect their investment.
The way to deal with this is to ensure you have an experienced attorney who can respond to these challenges and defend your interests in bankruptcy court. If you legitimately incurred debt and are attempting to obtain a discharge in good faith, an experienced lawyer probably means you have little to worry about.
There are no guarantees in bankruptcy, but you can have a better fighting chance when you have capable counsel in your corner. We at Buchalter & Pelphrey Attorneys At Law can help – contact us online to learn how.