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Can my Bankruptcy chapter 7 be denied and I don't find out until the day I'm suppose to get the discharge order?

Las Vegas, NV |

Well the time is up and I'm suppose to get my discharge order any day now! I called the automated phone system to see if there is any information and the phone said "Denied"? My heart fell to the floor, because I did everything I was suppose to do and disclosed everything! It would not make sense, unless the judge has personal agendas, and that wouldn't make sense! I never met the judge. I called the bankruptcy help desk and gave her my case number, she looked it up and said it's scheduled to go through tonight. She said that she would see notes or something if it was denied, but it will update tonight and be discharged. So I feel a little uneasy and don't know what to expect? What are my options if it's denied? and shouldn't I have known it was going to be denied long before this point?

Attorney Answers 5

Posted

I'm not quite sure what phone system you are calling as we don't have that in this district. There is no such thing as "denied" in a Chapter 7 bankruptcy. You either get a discharge, or you don't. Your case can be dismissed for a variety of reasons (failure to file something, failure to disclose something, failure to turn over non-exempt property to the Trustee, abuse of the system, perjury, etc.) but there would be a hearing on the Trustee or U.S. Trustee's Motion to Dismiss. You may be getting bad information through whatever system you're calling. If you have an attorney give them a call, they can tell you if the Trustee filed a no asset report/recommended no claims docket and allowed your exemptions. You should also have taken two courses, a credit counseling course prior to filing and a Financial Management Course post-filing. If you haven't taken the second you won't get a discharge. Hope that helps!

This answer is meant to be educational/informative and is not legal advice. It does not create an attorney/client relationship between us.

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Posted

At least in my district, there are many thousands of pending case and the Clerk's office (and their computer system) has to keep up with all of them. There is no specific date the discharge is "supposed" to be entered and no official deadline. There is a first day the debtor is eligible for discharge. It might be entered in a day or two, or it might be the next week. Sometimes the second or third week. It may or may not go faster if you call every day, and it does no good to imagine problems.

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Posted

Your Chapter 7 wouldn't just be denied. There is a deadline for a creditor or the US Trustee to file an objection to your discharge, and if your deadline was today, the discharge may come through sometime after 5 pm tonight. It may be that the automatic phone system got your info wrong. The help desk does stay on top of things but doesn't know what someone may file in the next few hours. Hope this perspective helps!

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Posted

Give it a day or two. Unless someone objected to discharge or moved to extend the deadline, you should get your discharge. Also, double check you filed the certificate for the financial management course. As someone else noted, if today was your deadline, check again tomorrow the discharge order will probably get entered overnight.

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Posted

Did you take the second debtor education course and file your Form B23 "Certification of Completion" form? If not, that could be what happened.

But if you did that, then the discharge usually comes out around 5pm on the day after the deadline to object to discharge.

--William

I am an attorney, just not your attorney (yet). Any answers here are to be deemed informational unless and until you retain me as your attorney for actual legal services and legal advice. I offer free in-person consultations so feel free to contact me offline by email or phone. If you like my answer, please hit the thumbs up button.

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