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Can my bankruptcy discharge be denied?

On Behalf of | Mar 28, 2022 | Personal Bankruptcy |

Filing for bankruptcy is a major decision that can have far-reaching consequences. If you’re considering declaring bankruptcy, you probably have a lot of questions about the process and what it will mean for your future. One thing you may be wondering is whether your bankruptcy discharge can be denied.

While it’s certainly possible for a bankruptcy court to deny a discharge, it’s not common. In most cases, as long as you meet the requirements for filing and follow the rules of the bankruptcy process, your discharge should be granted.

So, what are the grounds for denial of a bankruptcy discharge? Let’s take a look:

Providing a false statement

When you file a bankruptcy petition, you purport that all the information is accurate. Even if you make an honest omission, creditors can challenge it, thus causing your discharge to be denied.

Attempt to defraud

Hiding or destroying property assets with the intent to defraud is a surefire way to get a denial. Full disclosure upfront is your safest bet. 

Hiding or destroying information

Falsifying, concealing or destroying financial records that can speak to your financial condition can result in discharge denial because it makes it hard to back up your claims.

Failure to attend credit counseling

You’re required to attend a credit counseling course and a financial management course; otherwise, you risk having to refile your case.

Failure to comply with a court order

It goes without saying that there will be consequences for failing to comply with instructions from the court. It would be a shame if that were the only reason your case was denied.

Filing for bankruptcy can be the first of many steps in managing your debt and reclaiming your finances. It’s a long process that is best carried out with the assistance of a professional. Being open and honest will go a long way in avoiding mistakes along the way and ensuring your discharge is approved.

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