QUESTION
If an involuntary chapter 7 bankruptcy discharge is denied, what happens next?
Asked on Jan 16th, 2016 on Bankruptcy - Michigan
More details to this question:
Does the trustee still take assets to sell to satisfy creditors? Does the trustee continue to investigate collect callbacks? Do the creditors get their own attorneys and go after the assets?
5 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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If the discharge is denied, the trustee can go after nonexempt assets as can your creditors.
Answered on Feb 12th, 2016 at 3:20 AM
2 Awards
The denial of a discharge does not mean the case is dismissed, so yes the creditors will still be paid whatever nonexempt assets there are to distribute.
Answered on Feb 10th, 2016 at 5:23 PM
The lack of a discharge does not affect the right of the bankruptcy trustee to seize assets and otherwise fulfill the obligations imposed as a result of a Chapter 7 filing.
Answered on Feb 10th, 2016 at 5:20 PM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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There are too many facts to know to be able to give you a responsible answer. Discuss this with your lawyer. And if you did not hire a lawyer to deal with an involuntary bankruptcy, and then a denial of discharge, you should hire a lawyer skilled in bankruptcy work immediately.
Answered on Feb 10th, 2016 at 5:20 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Ask your attorney for specifics, generally your remain fully liable for the debts, court orders remain in effect and your creditors can seek to collect.
Answered on Feb 10th, 2016 at 5:18 PM