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Chapter 7 Discharge

A Chapter 7 discharge is a court order releasing the debtor from personal liability on his or her obligations (except for those obligations set forth in Bankruptcy Code Section 523). See the article Exceptions to Discharge.  Debtors will obtain their Chapter 7 discharge at the end of the Chapter 7 process.

Under Bankruptcy Code 727, the bankruptcy court will grant debtor a discharge unless:

1. The debtor is not an individual;

2. The debtor has concealed assets or failed to preserve records;

3. The debtor has made a false oath or withheld documentation from the Chapter 7 trustee;

4. The debtor has failed to explain any loss of assets;

5. The debtor refuses to obey any lawful order of the court;

6. The debtor has been granted a discharge under Chapter 7 or 11 in a prior case within 8 years before the filing of
the present case;

7. The debtor has failed to complete an instruction course regarding financial management;

8. The debtor has been granted a discharge under Chapter 13 in a prior case within 6 years before the filing of the present case unless payments under the plan either totaled 100% of allowed unsecured claims or 70% of such claims and the plan was proposed in good faith.

A Chapter 7 trustee, creditor, or the United States may object to the granting of a discharge. Once a discharge has been granted, the court may revoke a discharge on certain grounds.