In Chapter 7 Bankruptcy the Discharge is governed by Bankruptcy Code Section 11 USC 727. Any debtor who files Chapter 7 Bankruptcy is eligible for the Chapter 7 Bankruptcy Discharge provided the debtor meets certain qualifications, and follows the required procedures in the Chapter 7 Bankruptcy.
A Corporation is not eligible for Discharge in Chapter 7 Bankruptcy. However, there are some advantages for a Corporation in filing Chapter 7 Bankruptcy.
Besides a Corporation, an Individual may file Chapter 7 Bankruptcy. An Individual is eligible for Chapter 7 Bankruptcy Discharge. In order for an Individual or an Individual and his or her Spouse, filing together, be able to receive a Bankruptcy Discharge in a Chapter 7 Bankruptcy, the debtor or debtors must meet certain criteria.
The debtor or debtors must first meet the criteria of income. If the debtor’s income significantly exceeds the median income as determined by family size, the debtor probably is not eligible to file Chapter 7 Bankruptcy. The median income determinations are published regularly by the US Trustee’s Office.
There are some exceptions or limitations to this law, including cases where “exigent circumstances” are present, or where the majority of the debtor’s debts are of a business or commercial, as opposed to a consumer character.
Most Individual Chapter 7 Debtors must also complete and obtain a credit counseling certificate before filing, and complete and obtain a debtor’s education certificate, after the filing of the Chapter 7 Bankruptcy. There are numerous other procedures that must be followed before the debtor may receive a Discharge. The Bankruptcy Attorney can explain the various procedures.
If there is what are considered fraudulent activities on the part of the debtor, either before or after the filing of the bankruptcy, a creditor or the bankruptcy trustee can bring an action to prevent the receipt of a Discharge by the debtor. Again, such intricacies are to be addressed with an experienced and practiced Bankruptcy Attorney.
If you have any questions, please contact Mr. Weller today at 1-800-407-3328 (DEBT) or through the Contact portion of our website. Our Bankruptcy Attorneys or Lawyers, and paralegals are here to help and assist you. Weller Legal Group has law offices in Clearwater, Port Richey, Lakeland, and Brandon, Florida.