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Why might a chapter 7 bankruptcy discharge be denied?

  • The debtor falsified his or her schedules or otherwise committed perjury in connection with the bankruptcy case.
  • A debtor whose debts are primarily consumer in nature and whose family income exceeds the median is required to complete a “means test” form. If, under standards contained in the bankruptcy code, the debtor is found to have a certain amount left over that could be paid to unsecured creditors, the bankruptcy court may decide that a discharge is not appropriate unless there are extenuating circumstances.
  • The debtor transferred away assets in the one year prior to filing with the intention of hindering, delaying or defrauding a creditor.
  • The debtor has failed to provide a satisfactory explanation for a loss of assets or otherwise failed to cooperate with the bankruptcy trustee.

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