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Why was my Chapter 7 bankruptcy discharge denied?

Debtors file for bankruptcy in order to achieve the elimination of their outstanding financial obligations. This is known as a discharge, and whether a Tennessee resident pursues Chapter 7 bankruptcy or Chapter 13 bankruptcy their goal is essentially the same: have the court approve the repayment of their debts and release them from their financial binds.

However, not all Chapter 7 debtors get a discharge at the end of their bankruptcy proceedings. There are a number of reasons that courts may use to justify the denial of debtors' discharges. This post will explore a few of those reasons and readers are reminded that they should discuss their cases with their own bankruptcy attorneys.

One reason that a Chapter 7 bankruptcy discharge may be denied is if a court suspects the debtor engaged in fraud in order to pursue bankruptcy protections. Fraud could take on many forms, such as hiding assets from the bankruptcy court or lying about their actual wealth and assets. Even if fraud is not expected, a debtor may be denied a discharge if they are not able to show what happened to certain assets during the course of their bankruptcy proceedings.

Failing to follow court rules is another way a discharge may be denied to a Chapter 7 debtor. Not completing one's credit counseling course or failing to abide by court orders may lead to a dismissal of a bankruptcy and the denial of a discharge for the debtor.

A bankruptcy discharge can help a person right the course of their financial life. In order to avoid the denial of this important event, debtors may want to retain the help of bankruptcy attorneys at the start of their Chapter 7 proceedings.

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Kenneth C. Rannick, P.C.
4416 Brainerd Road
Chattanooga, TN 37411

Phone: 423-624-4002
Toll Free: 800-257-7594
Fax: 423-624-0509
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