What is a 727 in bankruptcy?
§ 727(a) provides that a debtor’s discharge generally can be denied if the debtor conceals property within one year or after the filing of the bankruptcy. This section also provides that a discharge can be denied if the debtor makes a false oath in a bankruptcy case or fails to explain the dissipation of assets.
Does section 727 apply to Chapter 13?
§ 727(a)(5) (failure to explain loss of assets). § 727 applies to actions taken during the Chapter 13 phase of a debtor’s converted bankruptcy case. The Court will examine the facts in light of the elements necessary to Plaintiff’s claims to deny Defendants’ discharge.
What does Title 11 of the United States Code deal with?
Title 11 of the United States Code, also known as the United States Bankruptcy Code, is the source of bankruptcy law in the United States Code.
What claims are nondischargeable in bankruptcy?
Nondischargeable debt is a type of debt that cannot be eliminated through a bankruptcy proceeding. Such debts include, but are not limited to, student loans; most federal, state, and local taxes; money borrowed on a credit card to pay those taxes; and child support and alimony.
What does it mean a discharge under 11 USC 727 is granted?
If the debtor has been granted a discharge in a case commenced within 6 years preceding the present bankruptcy case, he is denied discharge. Subsection (b) specifies that the discharge granted under this section discharges the debtor from all debts that arose before the date of the order for relief.
What happens if bankruptcy is revoked?
If the court revokes your bankruptcy discharge, you’ll remain liable for any previously discharged debts. Also, if you committed fraud or otherwise abused the bankruptcy system, you might have to pay fines, forfeit assets, or face criminal prosecution.
Can creditors file Chapter 11?
Chapter 11 is often called the “reorganization bankruptcy.” It’s for businesses that want to keep operating but need time to restructure their finances in order to pay the bills. Filing can be done voluntarily, or it can be forced on a business if three or more creditors file a petition with the bankruptcy court.
What does emerging from bankruptcies mean?
Bankruptcy emergence occurs when a company goes into bankruptcy, but is able to reorganize its debts and assets, and create a plan to pay all or some of its creditors. The main benefit of emergence over liquidation is the company can continue operating as a business.
What happens to nondischargeable debt?
Non-dischargeable debts are debts that can’t be eliminated in a bankruptcy because the U.S. Bankruptcy Code doesn’t allow it. If you have non-dischargeable debts, a Chapter 7 bankruptcy case will not get rid of the debt. However, a Chapter 7 case can get rid of other debts so that you can pay non-dischargeable debts.
Does the creditor assert that the debt is nondischargeable?
In order for the debt to be nondischargeable, the creditor must prove that the debt was obtained by the use of a statement in writing (i) that is materially false; (ii) respecting the debtor’s or an insider’s financial condition; (iii) on which the creditor to whom the debtor is liable for obtaining money, property.
What does section 727 ( a ) of the House Bill mean?
Section 727(a)(10) of the House amendment clarifies a provision contained in section 727(a)(9) of the House bill and Senate amendment indicating that a discharge may be barred if the court approves a waiver of discharge executed in writing by the debtor after the order for relief under chapter 7.
Can a Chapter 11 petition be converted to Chapter 7?
This modification is particularly important with respect to an individual debtor who files a petition under chapter 11 or chapter 13 of title 11 if the case is converted to chapter 7.
Is it a bar to discharge under Title 11?
However, section 727 (a) (9) of the House amendment contains a compromise based on section 727 (a) (8) of the Senate amendment with respect to the circumstances under which a plan by way of composition under Chapter XIII of the Bankruptcy Act [chapter 13 of former title 11] should be a bar to discharge in a subsequent proceeding under title 11.
When is a debtor discharged under Chapter 7?
The provision makes clear that the debtor is discharged from all debts that arose before the date of the order for relief under chapter 7 in addition to any debt which is determined under section 502 as if it were a prepetition claim.