Anyone filing a Chapter 7 or Chapter 13 bankruptcy in Georgia will have a trustee appointed to oversee their case and its administration. This is standard procedure and usually does not create problems for the petitioner and their case. However, bankruptcy trustees do have the ability to challenge whether you should be given a discharge in certain circumstances. Read on to understand about objections to discharge and the procedure involved in Georgia bankruptcies.
Why a Trustee Would Object to Bankruptcy Discharge
Objections typically come about for two main reasons – bankruptcy law compliance and lack of transparency during the process. The Bankruptcy Code has set limits and eligibility requirements on how often debtors can receive a discharge through bankruptcy and waiting periods if a previous bankruptcy case was dismissed by the court. Failing to comply with these rules means a petitioner would not be legally entitled to discharge of their debts in bankruptcy court and will almost certainly bring about an objection from the trustee.
Additionally, bankruptcy filers are expected to be honest and transparent with trustees and courts during the process. Debtors can expect the trustee to file an objection to the discharge if they:
- Do not obey court orders;
- Commit bankruptcy fraud;
- Lie on bankruptcy papers or during the meeting of creditors;
- Hide, falsify, fail to keep, or destroy financial records; or
- Try to defraud creditors by concealing, transferring, or destroying your property.
Objection to Bankruptcy Discharge
If the trustee feels circumstances warrant, they may challenge your discharge by filing a written objection with the court that sets out the reasons the judge should not grant a bankruptcy discharge in your case. The objection is an adversary proceeding – essentially a lawsuit.
Once the trustee has filed their objection to discharge with the court, a debtor has the opportunity to respond to the trustee’s claims and explain why a bankruptcy discharge is warranted in their case. Both petitioner and trustee will be given a chance to present their arguments during a bench trial, and at its conclusion, the court will decide whether it will grant or deny the debtor’s bankruptcy discharge.
Avoid Objections to Your Bankruptcy Discharge
It can be difficult to understand – let alone comply with – bankruptcy procedures and rules on your own. However, failing to do so can result in a trustee objection and have very serious consequences for your case and your financial future. Avoid these pitfalls by speaking with the experienced Georgia bankruptcy attorneys at The Ballard Law Group today. Our experienced attorneys have been helping clients obtain successful bankruptcy discharges for years, and we can help you understand the process and avoid common mistakes petitioners make. We offer a free consultation to review your case, answer your questions, and help you begin rebuilding your finances. Call us at (404) 800-9939!