Illinois Bankruptcy Lawyers - "Can creditors object to discharge?"

Debtors do not have an absolute right to discharge in Illinois bankruptcy proceedings. A grant of discharge is subject to court review and subject to all creditor objections filed. Creditor objections must be resolved by the court before a discharge may be granted. Creditors do not need court approval to file motions objecting to relief or file complaints to initiate adversary proceedings. An adversary proceeding is similar to a lawsuit, within a lawsuit, that requires adjudication before the debtor's bankruptcy case may progress.

Illinois Bankruptcy Lawyers - In Practice

Creditors and their bankruptcy lawyer's objections are subject to deadlines and are assigned the burden of proof. In practice, because creditors and their bankruptcy lawyers carry the burden of proof, doubt is resolved in favor of the debtor. If motions or complaints are late, unclear, or unconvincing, relief requested by the debtor will proceed unfettered. Specific reasons which support a motion filed by creditors or their bankruptcy lawyers are set forth partially in 11 U.S.C. 523, and include the following:

• Debts incurred through fraud.
• Purchases of more than $1,000 in luxury goods or services from a single creditor within 60 days of filing.
• Liability omitted from the list of creditors or schedules, or incorrectly identified in the list of creditors or schedules.
• Student loans, unless repayment would cause undue hardship.
• Undeclared federal, state, and local taxes.
• Credit card payments for taxes can not be discharged in Illinois bankruptcy.
• Child support payments, alimony and related obligations.
• Fines and restitution to crime victims.
• Fess imposed by courts can not be discharged in Illinois bankruptcy.
• Fines and judgments resulting from DWI, DUI, or intoxication.
• Liabilities deemed nondischargeable in previous bankruptcies due to fraud or malfeasance.

Requirements for discharge and confirmation are complex. Bankruptcy lawyers must carefully construct a financial history for each client before recommending any course of action. Because financial histories are unique, available options under the Code vary. Also, bankruptcy lawyers frequently arrive at different conclusions regarding available options, based on each bankruptcy lawyer's level of experience and expertise. All debtors who have questions regarding discharge and confirmation through the Illinois federal court system should compare the advice of several bankruptcy lawyers to establish the range of options available.

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