California Bankruptcy Lawyers - "Can creditors object to discharge?"

Debtors do not have an absolute right to discharge in California bankruptcy proceedings. A grant of discharge is subject to court review and subject to all objections filed by creditors and their bankruptcy lawyers. Creditor objections must be resolved by the court or by consent of bankruptcy lawyers representing creditors, before a discharge may be granted. Creditors and their bankruptcy lawyers do not need court approval to file motions objecting to relief or file complaints to initiate adversary proceedings. An adversary proceeding is similar to a lawsuit, within a lawsuit, that requires adjudication before the debtor's bankruptcy case may progress.

California Bankruptcy Lawyers In Practice

Creditors and their bankruptcy lawyer's objections are subject to deadlines and are assigned the burden of proof. In practice, because creditors and their bankruptcy lawyers carry the burden of proof, doubt is resolved in favor of the debtor. If motions or complaints are late, unclear, or unconvincing, relief requested by the debtor or their bankruptcy lawyer will proceed. Specific reasons which support a creditor's motion to deny discharge are set forth partially in 11 U.S.C. 523, and include the following:

• Debts incurred through fraud.
• Purchases of more than $1,000 in luxury goods or services from a single creditor within 60 days of filing.
• Liability omitted from the list of creditors or schedules, or incorrectly identified in the list of creditors or schedules.
• Student loans, unless repayment would cause undue hardship.
• Undeclared federal, state, and local taxes.
• Credit card payments for taxes can not be discharged in California bankruptcy.
• Child support payments, alimony and related obligations.
• Fines and restitution to crime victims.
• Fess imposed by courts can not be discharged in California bankruptcy.
• Fines and judgments resulting from DWI, DUI, or intoxication.
• Liabilities deemed nondischargeable in previous bankruptcies due to fraud or malfeasance.

All prudent debtors have questions about applicable laws before filing. The best source of legal advice is a qualified bankruptcy lawyer with substantial, current experience practicing before federal courts. Because state and federal laws change frequently, the results achieved by bankruptcy lawyers for their clients also change frequently  in direct response to these amendments. Depending upon the personal goals and situation of each debtor, all options may not apply. The best bankruptcy lawyers are intimately familiar with all options, as an assortment of tools, that may be combined creatively to maximize client benefits.

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