The next letter in the Bankruptcy Alphabet is O, which stands for Objections in Bankruptcy. This is an important concept. An objection is a lawsuit that someone else, usually a creditor who you owe, files in your case to contest your bankruptcy. In some cases, the bankruptcy trustee could also file an objection. I will describe the types of objections, and how often these objections may happen in bankruptcy cases.
Two types of objections are objections to dischargeability (of a single debt), and objections to discharge (of the whole case).
Objection to Dischageabilty is called a Section 523 objection. (for the section of the bankruptcy code) All creditors are given a limited amount of time (generally 60 days from the date of the meeting of creditors) to file an objection. In order to object, a creditor has to file papers called a complaint, with the bankruptcy court, and send out notice of that complaint. There are very specific rules on how to do this, and usually the creditor hires an attorney to do this. There are also very limited reasons that a creditor can have to complaint objecting to the discharge of your debt to them. Some of the reasons are if they allege you committed fraud by lying on your application for credit, or if you knew when you got the debt that you couldn’t pay the debt. The creditor has to prove very specific things in order to be successful. The allegations in the lawsuit have to be proven to the Bankruptcy Judge, and the Judge has to rule in their favor. If the creditor is successful in the lawsuit, then their debt has to be paid, in spite of the bankruptcy, i.e., the debt is not discharged (eliminated). If a complaint is filed, you need to be sure to have an experienced bankruptcy attorney represent you.
The other type of objection is an Objection to Discharge, or section 727 objection. This is the “nuclear” option, where, if successful, it would deny a person’s whole Discharge. That would mean that the whole case would be denied. This is a very difficult thing for a creditor to prove. But, it would mean that the debtor (the person who filed the bankruptcy case) hid assets or lied on his bankruptcy to such a degree that he or she was abusing the bankruptcy process, at least in the eyes of the Judge.
These types of objections, while they do happen, are not done in most cases. Most cases, if done right, do not have these sorts of objections. The key is to be honest and forthright with your attorney. That attorney should be experienced in bankruptcy law. And, if you are honest about everything, that attorney should be able to predict which creditors would be most likely to give you problems in your case.
Again, these are very complex issues, best handled by an experienced bankruptcy attorney. If you are honest with an experienced bankruptcy Attorney about your situation, you should steer clear of these types of objections. The key, as in most bankruptcy situations is full disclosure and honesty in preparing your case.
If you have questions about your specific situation, be sure to call an experienced bankruptcy attorney, such as the attorneys at the Law Offices of Daniel J. Winter. We have offices inChicago,Oak Lawn,Skokie, andWaukeganto meet with you.
DANIEL J. WINTER
LAW OFFICES OF DANIEL J. WINTER
53W. Jackson Boulevard
Suite725
Chicago,IL60604
312-789-9999
BankruptcyLawChicago.com
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