Bankruptcy Discharge
If the deadline for objecting to discharge passes without any objections to the debtor's discharge being filed and the debtor is an individual (as opposed to a corporation, partnership, or business trust), the court will issue the discharge order. A chapter 7 debtor that is a corporation, partnership, or business trust is not eligible to receive a discharge.
In a chapter 7 case in which the debtor's bankruptcy estate has no assets from which creditors can be paid, the trustee will prepare a report of no distribution and (assuming the debtor has already been granted or denied a discharge) the Clerk's Office will close the case.
However, in a chapter 7 case in which the debtor's bankruptcy estate has non-exempt assets from which creditors can be paid, the trustee will collect the assets, liquidate them, and hold the proceeds for distribution to creditors.
In the meantime, the court will set a deadline for filing claims and notify all creditors to file their proofs of claim before the deadline. The trustee can then object to claims if he or she believes them to be invalid or excessive, and after the creditor is given notice of the objection and an opportunity to be heard, the Court rules on the trustee's objection.
Your discharge will not be entered until after the date in the "Discharge of Debts" section of your notice regarding the meeting of creditors has passed, which will be 60 days after the meeting of creditors. The discharge does not close your case. It will be closed when the trustee has completed the administration of your estate.
When the deadline for filing claims has passed and all disputed claims have been resolved, the trustee will distribute the proceeds of the debtor's assets to creditors. When the assets have been completely administered, the Court will close the case.
Denial of Bankruptcy
Discharge and Non-Dischargeable Debt
A denial of a discharge affects the debtor's entire discharge, and therefore all dischargeable debts, while a determination of non-dischargeability affects only a particular debt. When a discharge is denied, the debtor gets no discharge at all, and so no debts are discharged.
The Court can deny a debtor's discharge for various reasons, which are set forth in section 727(a) of the Bankruptcy Code. The most common reasons for denying a discharge are that the debtor defrauded a creditor, concealed property of the estate, made a false statement under oath in the bankruptcy case, presented or used a false claim, or refused to obey a lawful order of the court.
On the other hand, a determination of nondischargeability excepts only a particular debt from the discharge. If the court determines a particular debt is not dischargeable, then the debtor is obligated to pay that particular debt, but the remaining dischargeable debts are discharged.
Dismissal Order
A dismissal order ends the case before you are discharged. When the Court dismisses the case, the "automatic stay" ends, and therefore creditors may start to collect debts again. An order of dismissal does not free the debtor from any debt.
The most common reasons for dismissing a case are that the debtor has failed to do something the debtor must do (such as appear for the creditors' meeting, answer the trustee's questions honestly, produce books and records the trustee requests) or that it is in the best interests of the creditors to dismiss the case.
Unless the debtor appeals the order or seeks reconsideration of the order of dismissal, the Clerk will automatically close the case.
See the new bankruptcy law relating to Dismissal for Failure to File Documents and Schedules.
Change of Address
If your mailing address changes after you file your bankruptcy petition, you must notify the Clerk's Office in writing. You must also notify your trustee. Failure to do so may result in legal action being taken against you without notice to you. When sending any correspondence to the court, please include your name and case number. You may use a praecipe form to change your address.
Communications with the Bankruptcy Court
If you are having a problem with any of your creditors after the filing of your bankruptcy, it is NOT possible to communicate in person or by phone with the Bankruptcy Judge. If you need to seek any relief from the Court, you must file a written motion specifying the relief you seek. The matter will then be set for hearing before the Judge.
The Clerk's Office cannot assist you with any problems or disputes you might have with any of your creditors or act on your behalf in that regard.
