What are the grounds for a creditor asking the Court to NOT allow a particular debt(s) to be discharged in a Chapter 7 bankruptcy case?
Debts for fraud, conversion, embezzlement, breach of fiduciary duty, wilful and malicious acts will be held “nondischargeable” in Chapter 7 by the Bankruptcy Court if the creditor files a timely “nondischargeablitiy” adversary proceeding (law suit) against the debtor in the debtor’s Chapter 7 bankruptcy case, asking the Court to hold that particular debt owed to that creditor “nondischargeable” and if the creditor sustains the creditor’s burden of proving that the debt in question is a debt due to debtor having committed fraud, conversion, embezzlement, breach of fiduciary duty, or other willful and malicious act; or proves that the debt in question is a property division debt from a divorce.
Related Questions
- What happens if a creditor ior second mortgage holder s trying to collect on a debt before I have filed for Chapter 7 Bankruptcy in Arizona?
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- Does a Chapter 7 Discharge affect the liability of other parties who may be liable to a creditor on a discharged debt?
