*Rule may be waived if 70% of unsecured creditors were paid in the Chapter 13 The above time periods are to be eligible for multiple discharges. That does not mean a debtor is ineligible to file. Although the goal of filing a bankruptcy usually is to obtain a discharge there are other reasons to file. One example is to file a Chapter 13 to stop a foreclosure. Another would be to file to regain possession of a repossessed vehicle. Ending wage garnishment or dealing with tax debt may be another reason to file when not eligible to receive a discharge.
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** The above list is not a complete list. Please consult an attorney before making any determination on the dischargability of any debt in bankruptcy.
** The above list is not a complete list. Please consult an attorney before making any determination on the dischargability of any debt in bankruptcy.
In my experience, when a debtor is caught lying on his/her petition, the first result is that their discharge is revoked. Second, their exemptions are disallowed, which in turn, means that all their formerly exempted property can now be sold, including their house, furniture, and cars. Lastly, the bankruptcy court can request that the United States Attorney’s office open an investigation and even criminally prosecute the debtor. Needless to say, the consequences of lying on the bankruptcy petition are immense, illegal and not advised. While no one likes to have their property liquidated in a bankruptcy, more often than not, it’s a small price to pay for the discharge of all one’s debt. To put it in perspective, lying and getting caught could get all your property sold, leaving you with all your former debt, and even prison time.
The shame of it all is that most debtors that conceal assets or income would have never lost anything if they had simply disclosed it to their attorney. An experienced attorney can counsel their client on whether the property is exposed and possibly pre-bankruptcy planning to avoid property loss. |