Who is eligible for a Chapter 7 Bankruptcy Discharge?
If you are considering filing for protection under Chapter 7 of the United States Bankruptcy Code, one of many determinations that must be made prior to filing your case is whether you are eligible for a Chapter 7 Bankruptcy discharge.
Any person who is qualified to file and maintain a case under Chapter 7 of the United States Bankruptcy Code is eligible for a Chapter 7 discharge, EXCEPT the following:
1. The debtor is not an individual.
2. The debtor, with intent to hinder, delay, or defraud a creditor or the trustee in the Chapter 7 case, has transferred, removed, destroyed, mutilated, or concealed property of the debtor within one year before the date of filing; or property of the bankruptcy estate, after the date of filing.
3. The debtor, without justification, concealed, destroyed, mutilated or falsified, or failed to keep or preserve records from which the debtor's financial condition or business transactions may ascertained.
4. A debtor who knowingly, fraudulently, and in connection with their bankruptcy case, makes a false oath or account; presents a false claim; gave, offered, received or attempted to obtain money, property, or advantage or a promise of the same, for acting or forbearing to act; or who withholds recorded information relating to the debtor's property or financial affairs from the trustee.
5. A debtor who fails to satisfactorily explain any loss or deficiency of his or her assets.
6. A debtor in the bankruptcy case who refuses to obey a lawful order of the court, other than an order to respond to a material question or testify; on the ground of privilege against self incrimination, refuses to respond to a material question approved by the Court or to testify, after being granted immunity from the same; or on a ground other than privilege against self incrimination, refuses to respond to a material question or to testify.
7. A debtor who has committed and act specified in (2) through (6) above, within one year before the date of filing, during the bankruptcy, or in connection with another bankruptcy case of a relative, partner, business associate, or corporation with which he or she is associated.
8. A debtor who has been granted a discharge in a Chapter 7 or Chapter 11 case that was filed within the last 8 years.
9. A debtor who has been granted a discharge in a Chapter 13 case that was filed within the last 6 years, unless 70 percent or more of the debtor's unsecured claims were paid off in the Chapter 13 case.
10. A debtor who files and obtains court approval of a written waiver of discharge in the Chapter 7 case.
11. A debtor who, after filing the case, fails to complete an instructional course on personal financial management.
12. A debtor who has been convicted of bankruptcy fraud, who owes debt arising from a securities law violation, or that a proceeding involving any of these matters is pending.
See 11 U.S.C. § 727.
Filing a Chapter 7 Bankruptcy case is very challenging. The attorneys of Hall & Hall Attorneys at Law, will assist you in determining your eligibility to file a bankruptcy case under Chapter 7 or Chapter 13. The attorneys in our office located in West Columbia, Lexington County, will represent and guide you to obtaining a discharge of your debt.