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

Debtors do not have an absolute right to discharge in Texas bankruptcy proceedings. A grant of discharge is subject to court review and subject to all creditor and creditor lawyer's objections that may be filed. Creditor objections must be resolved by the court before a discharge may be granted. Creditor's lawyers 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.

Creditors and their lawyer's objections are subject to deadlines and are assigned the burden of proof. In practice before Texas bankruptcy courts, because creditors 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. Specific reasons which support a lawyer's motion seeking denial of discharge 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 Texas bankruptcy.
• Child support payments, alimony and related obligations.
• Fines and restitution to crime victims.
• Fess imposed by courts can not be discharged in Texas bankruptcy.
• Fines and judgments resulting from DWI, DUI, or intoxication.
• Liabilities deemed nondischargeable in previous bankruptcies due to fraud or malfeasance.

All debtors and their attorneys have questions about current laws. Board certified consumer bankruptcy specialists in Texas refer to the Code regularly, as well as review slip opinions of new case decisions as they become available. The process is organic, in that the law, benefits, rights and duties of debtors changes in response to the current political environment, and in turn, require a constantly changing approach in court to gain favor. Also be aware, each debtor and their attorney are responsible for legal compliance with all Texas bankruptcy laws regardless of actual knowledge of recent changes. For this reason, debtors filing pro se seldom achieve the results as favorable as debtors who are represented by a qualified consumer specialists who is familiar with current changes and requirements.

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