Objection to discharge

How it works

In Chapter 7 the debtor does not have an absolute right to a discharge. A creditor, the case trustee or the U.S. trustee may object by filing a complaint in the bankruptcy court, which starts a lawsuit called an adversary proceeding. The deadline is short: within 60 days after the first date set for the meeting of creditors, whether or not the meeting is held that day. The court may extend it for cause, but generally only on a motion filed before the time runs out. 2 3

The reasons a court may deny a discharge include transferring or concealing property to hinder, delay or defraud creditors, destroying or concealing books or records, perjury and other fraudulent acts, failing to account for a loss of assets, violating a court order, failing to provide requested tax documents and failing to complete the financial management course. 2

The party that objects has the burden of proving the facts. Unless there is litigation over an objection, the debtor will usually receive the discharge automatically. 2

Chapter 13 works differently. Creditors can object to confirmation of the repayment plan, but they cannot object to the discharge once the debtor has completed the plan payments. 2