Chapter 7 bankruptcy is the most common type of bankruptcy that both individuals and businesses file for. The process of debt discharge in Chapter 7 can become complicated even in cases that seem straightforward. Having an experienced professional at your side during the bankruptcy preparation process is a critical part of filing a successful case. Behm Law Group, Ltd. provides expert counsel when you choose to file for bankruptcy in St. Peter, MN.
When you file for Chapter 7, your bankruptcy estate is put through the organizational procedures of determining what exemptions you can claim and what assets can be effectively liquidated.
Generally, debts listed for discharge in the Chapter 7 process are left uncontested, but there are times when creditors or even your trustee may file a complaint objecting to the discharge of one or more of your debts. Trustees will most likely only object to a discharge if you have provided false information, transferred property in order to hide it, lied under oath, or exhibited other fraudulent behavior. With the help of a Behm attorney and as long as you are completely honest and forthright about listing all of your property and all of your creditors, there is much less risk of this happening.
However, creditors may choose to object the discharge of a specific (dischargeable) debt if they believe they are being treated unfairly or if they believe that you engaged in some sort of fraudulent behavior when you incurred the debt. There are a wide range of reasons a creditor may have grounds for objecting to the discharge of one of your debts. These commonly include:
- You made charges over $675 on a credit card in the 90 days prior to the filing of your bankruptcy case.
- You made a cash advance on a credit card over $950 in the 70 days prior to the filing of your bankruptcy case.
- You secured a loan with false information in your loan application or financial statement.
- You filed a tax return with incorrect information.
- Your debts were directly caused by malice or intentional misconduct that led to property damage.
- Your debts were directly caused by your harm to others while you operated a vehicle while intoxicated.
- Your income tax debt was due during the past three years.
- Your income tax debt is from a year you did not file your tax return on time.
There are several other rare cases that provide grounds for objection to discharge, including complicated processes related to income tax debts. Because of the intricately-nuanced regulations in debt discharge and plausible objections, building a case with the help of a Behm attorney is a great benefit to those filing for Chapter 7 bankruptcy.
To learn about which type of bankruptcy would be the most suited to your financial situation and to find out more about how our attorneys can help you file for bankruptcy in St. Peter, MN, contact Behm Law Group, Ltd. at (507) 387-7200 today.