I’ve just filed for bankruptcy in Phoenix, but one of my creditors is arguing that my debt to them cannot be discharged. What does this mean for my case?

In an ideal Arizona bankruptcy case, your debts are discharged and you are protected from harassment from your creditors. For you, this is considered a good thing. For your creditors, it is understandably a bit less palatable.


Of course, while most creditors are not happy to have your debt to them discharged, they will usually let it happen without much fuss, as bankruptcy law states clearly which debts are dischargeable. In your situation, it sounds as though this particular creditor disagrees that the debt you owe them falls under the category of dischargeable debt.


You may be wondering why the creditor is objecting the discharge of this particular debt to begin with. While a common reason for discharge objection is intentional falsification of financial or tax statements, the odds are that the reason is something far less sinister. Oftentimes, in a last ditch attempt to pay bills or even get by before filing for bankruptcy, filers will charge large amounts to their credit cards or take out cash advances. If you did this within a certain window of filing for bankruptcy, your creditor will likely prevail.


In order to dispute the discharge of the debt in question, the creditor must first file an objection with the bankruptcy court. This objection must be filed no later than 60 days after your 341 meeting. This will not affect the discharge of any of your other debts. If the objection is successful, you will be required to repay your debt; if the objection fails, the debt will be discharged along with the rest.


If you feel as though this dispute has been wrongfully filed and you have questions as to what may be next for you, Curry, Pearson & Wooten’s Phoenix bankruptcy attorneys are standing by to help. Call us now at 602-258-1000 to learn more.