chapter 7

Is it ever possible for a Chapter 7 trustee to take a debtor’s exempt assets? The answer is “yes” in extraordinary cases. The issue was addressed in a recent bankruptcy court decision.

In In re Kulakowski, No. 12-15294, 2013 U.S. App. LEXIS 23110 (11th Cir. Nov.

A bankruptcy court can dismiss a Chapter 7 bankruptcy filing for “bad faith” even if the debtor passes the means test or is exempt from the means test because his debts are primarily non-consumer debts. A Florida bankruptcy court dismissed a Chapter 7 filing because the court found that the bankruptcy filing was not appropriate and was not consistent with the purpose of the bankruptcy code.

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You will normally receive your Chapter 7Discharge Order about 3 to 4 months after the creditor's meeting. This Order renders unenforceable all debts other than those specifically excepted by law.  It also enjoins creditors from attempt to collect on debts that are discharged.

Bankruptcy debtors are bound by the information on their bankruptcy petition, and debtors should not assume they can edit financial information to protect assets after the bankruptcy trustee requires the assets to be turned over.