At Kain & Scott we get asked what the chances of getting denied a Chapter 7 discharge a lot and we completely understand this concern. But, let’s talk about what actually happens to the VAST majority of Minnesotans who file a Chapter 7 bankruptcy. The VAST majority get their discharge and have their debts wiped out, tax free! However, a very small percentage of cases do get denied, here are the reasons:
The single most common reason someone can get denied a Chapter 7 discharge is because they filed a Chapter 7 bankruptcy but had the ability to file a Chapter 13 bankruptcy and make a payments back to the creditors. If you have the ability to make a payments back to your creditors you need to file a Chapter 13 bankruptcy, not Chapter 7.
The second most common reason someone may get denied a Chapter 7 discharge is by lying on your schedules or at your hearing or fail to cooperate with the trustee. Getting a Chapter 7 discharge requires honesty from you and your cooperation in the administration of the estate. Failure to cooperate or be candid on your schedules and Chapter 7 case would be grounds for a denial or revocation of your discharge.
When the time is right, or when you are ready, reach out to Kain & Scott. You'll be glad you did. We are Minnesota’s only Bankruptcy Law Firm that HELPS you get rid of debt and offers you a FREE 90 Day Credit Repair Program.