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Anyone here had their discharge denied?

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    Anyone here had their discharge denied?

    Just curious if that has happened and what the circumstances were.

    In a conversation today I was told by a financial counselor from our church that he knows of 2 cases where the bankruptcy discharge was denied. He didn't know why but says it does happen.

    What would cause this to occur? I'm assuming if you are fraudulent in your information and hide assets or something, then that would be a reason.

    I think DH & I are just worrying too much right now, and because the UST is looking further into our paperwork it isn't helping to ease our minds. We do have a lot of CC debt from the past year, but we also did list everything we own appropriately on the statements we filed.

    When we sat through the 341 yesterday there were a number of people who filed pro se, and they were really unprepared. One woman was wearing tons of jewelry--necklaces, earrings, rings, bracelets--I mean the bling was everywhere! And the BT asks, why did you list "none" under jewelry and furs when I can see you are wearing jewelry. Her response was that it wasn't hers, she was borrowing it. He then asked why most of her creditors were jewelry stores and she said she pawned those pieces to live off the cash. Now that I can see as out & out fraudulent activity.
    11/18/08 filed CH 7; 341: 12/11/09, cont'd to 01/06/09
    03/21/09 341 hearing for CH 13
    04/27/09 Confirmation hearing for CH 13
    $199/mth for 60 months + $9K 2008 income tax refund

    #2
    Cases, such as the woman you describe are prime candidates for being dismissed. And it can be dissmissed with prejudice, which means that she can't ever file against the creditors she listed the first time around.

    The UST will take a look now and again at cases. Probably nothing triggered their interest--most likely it was just a random draw.

    Otherwise, I hope your 341 went well. Welcome to the 60 Day Club.
    "To go bravely forward is to invite a miracle."

    "Worry is the darkroom where negatives are formed."

    Comment


      #3
      Fraud is usually the resaon to be denied a discharge. Hiding assets could be another main reason. If your BK filing is accurate to the best of your knowledge, then you shouldn't need to worry or be stressed. Most consumer BK cases are pretty cut and dry.
      Bankruptcy History:
      Chapter 7 filed - 10/12/2005 - Asset
      Discharged - 02/16/2006
      Case Closed - 11/08/2007

      A banker is a fellow who lends you his umbrella when the sun is shining and wants it back the minute it begins to rain ~ Mark Twain

      All suggestions are based on personal experience and research and SHOULD NOT be construed as legal advice as I am NOT an attorney. Always consult with competent counsel in your area with regards to your particular situation.

      Comment


        #4
        Thanks, we were very thorough in our listing, we weren't sure how detailed to get, so we got really detailed, lol. But the attorney said that is better than saying little and them finding out you had more. I think that if we want our case to be handled fairly we need to be honest and quick to respond to whatever they want so we can get it dealt with quickly.

        The 341 was adjourned because we did make a payment to WaMu back in early Sept to pay off a card and it was omitted on our paperwork. The BT said we would not have to re-appear if that info was revised and he had everything he needed. The UST has more things they want clarified so we are awaiting the letter from them to produce some receipts and/or explanations of deposits, etc..

        So I'm not sure, if we're adjourned...does our 60 days start yet? Or from the adjournment date?
        11/18/08 filed CH 7; 341: 12/11/09, cont'd to 01/06/09
        03/21/09 341 hearing for CH 13
        04/27/09 Confirmation hearing for CH 13
        $199/mth for 60 months + $9K 2008 income tax refund

        Comment


          #5
          And don't forget - there are some real creditor friendly, anti consumer trustees out there.

          Comment

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