Yes, when you file bankruptcy, there is always a possibility that one of your creditors might stop your debt to them from being discharged. Ultimately, it will be up to the judge to decide what to do but some reasons that creditors give to try to block their debt from discharge are:
- They think you lied on a credit application (example, said you made $100,000 annually but you really make $10,000. Mistake?)
- They think the debt smells of fraud (example: you ran up a lot of debt or purchaed luxury goods, then turned around and filed for bankruptcy too soon to be plausible)
- They think you used someone else's property as collateral for your loan
- "Totality of the Circumstances": Given everything considered, there is some reason why it would be wrong for this debt to be discharged for you.
Keep in mind, not only could one creditor try to block their debt from being discharged, but there exists the possibility that a judge could stop your entire bankruptcy from essentially going through. Don't be frightened by this, but rather this should hilight for you the reason that it is critical to:
- Hire an experienced Chicago area bankruptcy lawyer to help you and
- Be totally 100% honest with your lawyer about everything.
While no attorney can guarantee you with absolute certainty that your bankruptcy will be smooth sailing, a forthright conversation with your attorney can usually save you from any problems down the road by helping you deal with potential problems and assessing the best way to go about things, even if that might mean that you are not a good candiate for bankruptcy. If you are worried about a circumstance that may be questionable in a personal bankruptcy, call O'Connor Cadiz Law for a confidential no-obligation appointment in either Schaumburg or Itasca. We want to help.