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1. Objection of a New Jersey Chapter 7 Bankruptcy Discharge

This is one of a twelve blog series explaining how a chapter 7 debtor may be denied a discharge.

Under certain circumstances a debtor may be denied a discharge. The bankruptcy code states numerous reasons why a debtor may be denied a chapter 7 discharge.

A bankruptcy discharge, eliminates all types of debt that may be discharged in a bankruptcy case, such as credit card debt, medical bills, and other unsecured debt.

Any living person filing a bankruptcy case, that is entitled to a discharge, is able to obtain a discharge. However, if the entity filing the bankruptcy case is not a living individual, the entity is not entitled to a discharge.  In other words, a corporation, limited liability company, or partnership that files for chapter 7 bankruptcy protection is not entitled to a discharge. If such an entity files a bankruptcy case, the trustee will administer the case, which may include the sale of assets. After the case is fully administered, the case is closed, with no entry of a discharge order.

After completion of the case administration, there is nothing left of the entity. Even though a creditor may legally sue the entity after the completion of the case, the suit would be futile, as the entity is worthless.

New Jersey bankruptcy attorney Robert Manchel may be reached at 1 (866) 503-5655, to discuss your chapter 7 bankruptcy issues.

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