What Happens If a Creditor Objects to Your Bankruptcy Discharge?

In this article, you can learn…

• What happens when a creditor objects to a bankruptcy discharge.
• The types of debts that may trigger an objection from a creditor.
• Whether discharge disagreements can be solved without going to trial.

What Does It Mean When A Creditor Objects To A Bankruptcy Discharge?

When a creditor objects to a bankruptcy discharge, that means the creditor does not believe the debt ought to be discharged, but that you should, instead, still owe them money, even post-bankruptcy.

How Common Are Creditor Objections In Florida Bankruptcy Cases?

Creditor objections are not very common. They most often arise when fraud is suspected or alleged. For example, if you were to run up a large amount of credit card debt or take out a loan right before you file for bankruptcy. In those circumstances, the creditor may argue that your timing was suspicious and that you had no intention of paying the debt back.

In other cases, creditors may object based on the belief that a debt you are attempting to discharge is not something that ought to be discharged. Finally, if you are filing for bankruptcy as a small business owner, creditors may be more likely to object simply because there’s a greater chance that at least one of them may not get paid.

Attorney Alec Solomita is a determined, skilled bankruptcy law attorney serving Florida. Since 2007, he’s helped clients just like you navigate creditor objections with skill, professionalism, and efficiency.

Have questions about bankruptcy, or in need of legal representation? Reach out to Solomita Law, PLLC for an initial consultation today.

Does A Creditor Objection Or Multiple Creditor Objections Mean My Bankruptcy Case Will Fail?

Not necessarily. The complete failure of a case would be quite rare. For example, a case might fail entirely if the filer’s debts were tied to a business that was in some way connected to criminal activity. In most other cases, having a single or multiple debts being objected to won’t prevent the discharge of the other, non-contested debts.

Can Bankruptcy Discharge Objections Be Resolved Without Going To Trial?

Yes. Your attorney can communicate with opposing counsel or with the creditor to see if a settlement can be worked out without having to go to trial. A trial would typically only occur if you firmly believe the debt ought to be discharged and had smoking-gun proof as to why that would be the case.

How Can An Attorney Help Me Resolve A Creditor Discharge Dispute In A Bankruptcy Case?

A bankruptcy attorney can help you determine if a creditor’s objection is valid. If the reason is valid, which it generally is, your lawyer can then negotiate toward working out an agreement and settling the matter without having to go to trial.

Your lawyer will help you get through objections as reasonably and quickly as possible, ideally negotiating so you pay less than the maximum amount required.

Still Have Questions? Ready To Get Started?

For more information on bankruptcy discharge objections, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (407) 255-7458 today.