Can A Creditor Refuse to Erase My Debt in Chapter 7?

 Posted on April 03, 2025 in Bankruptcy

People turn to bankruptcy because they find themselves burdened by overwhelming debt and seek the financial fresh start that Chapter 7 bankruptcy can provide. In some cases, however, a creditor can refuse to erase a specific debt or may refuse to discharge all of the debtor’s debt in the bankruptcy proceeding.

To do so, the creditor must go through a legal process in the bankruptcy court; the creditor cannot simply decide not to wipe out a debt. An experienced Mecklenburg, NC Chapter 7 bankruptcy attorney is here to safeguard debtor’s rights in bankruptcy court and protect them from a creditor’s refusal to discharge debt.

When Can a Creditor Object to the Discharge of a Debt?

There are a few common reasons why a creditor might object to the discharge of a specific debt:

Large Purchases

The debts from any large or extravagant purchases made before bankruptcy, even if they would normally be discharged, can raise red flags for creditors. Likewise, large cash advances made before bankruptcy may be challenged by a creditor.

Non-Dischargeable Debts

Certain types of debts are not dischargeable in bankruptcy, including certain tax debts, child support, most student loans, and alimony. If a creditor believes that one of the debts you seek to discharge falls under this category, they may object to the discharge.

Bad Behavior 

Any debts arising out of spiteful or illegal conduct could be challenged. A creditor can also challenge monetary damages assessed against you while you were operating a car under the influence of drugs or alcohol.

Creditors may object to the entire bankruptcy discharge and seek its dismissal if you committed any serious wrongdoing such as providing false information to the bankruptcy court on your application, destroying property, or lying to the trustee or the court during bankruptcy.

Fraud

If a creditor suspects that you committed fraud, they can object to the discharge of your entire Chapter 7 bankruptcy debt. For example, if you are suspected of having transferred assets to a friend or family member before filing for bankruptcy in order to keep the assets from being sold to pay your debts in bankruptcy, that is called a fraudulent transfer and it is a very serious violation that could be grounds for a discharge denial.

Call a Mecklenburg, NC Chapter 7 Bankruptcy Attorney 

At Blossom Law PLLC, attorney Rashad Blossom is here to assist you through every aspect of the Chapter 7 bankruptcy proceeding. If you are facing financial troubles and want to hear about your options for dealing with debt, speak with our experienced Union County, NC bankruptcy attorney. Call our offices at 704-256-7766 for a complimentary consultation.