If you’ve filed for bankruptcy, you’re probably hoping to get a fresh start financially. But in some cases, your creditors may dispute your discharge, which can complicate things. Here’s what discharge disputes are and how to deal with them.

Defining a Discharge Dispute In Bankruptcy

A discharge dispute is a type of adversary proceeding in bankruptcy. The purpose of an adversary proceeding is to allow the court to hear and determine certain matters that couldn’t be resolved during the debtor’s bankruptcy case.

In a discharge dispute, a creditor is asking the court to find that the debtor shouldn’t get a discharge for a specific reason. If the court rules in favor of the creditor or lender, then that particular debt will not be discharged and will still be owed even after bankruptcy.

Reasons Why a Creditor Might Dispute a Discharge

There are several reasons why a creditor might want to dispute a debtor’s bankruptcy discharge. For example, if the debtor didn’t list the creditor on their bankruptcy schedules, the creditor might argue that they weren’t given proper notice of the bankruptcy case and therefore their rights weren’t protected.

Or, if the debtor received a discharge in a previous bankruptcy case, the creditor might argue that the debtor shouldn’t get another discharge because they’re abusing the bankruptcy system.

How to Fight a Discharge Dispute

If you are the debtor in a bankruptcy case and a creditor files a discharge dispute, there are several things you can do to fight it.

For example, if a creditor is claiming that you did not complete the required financial education classes, make sure you have evidence that you did. This might include a certificate of completion or transcripts from the courses.

If they’re alleging that you committed fraud, gather any evidence you have that disproves their claim, like documentation showing that what you said on your bankruptcy paperwork was true or witnesses who can testify that you did not commit fraud.

Should You Call a Chapter 7 Bankruptcy Lawyer?

If you are facing a discharge dispute in your bankruptcy case, it is important to seek legal advice as soon as possible. An experienced bankruptcy lawyer can review your case and advise you on how to best proceed. They can also help you gather evidence and prepare for hearings. Contacting a lawyer early on in the process will give you the best chance of success in fighting a discharge dispute.

Contact one of the veteran bankruptcy lawyers at Sims Bankruptcy Law, PLLC by dialing 469-751-7467 (Dallas) or 254-304-7161 (Central Texas).