Opposing a discharge.
April 10th, 2007 by Questions
Can a creditor oppose a bankrupt’s discharge for a small misrepresentation on the credit application?
One of my creditors is threatening to do that if I declare bankruptcy. In the online application for credit I had stated that my salary was 72K whereas the actual salary was 60K. (I had included a onetime special award)
I don’t believe that the creditor will make good on his threat. But then if he does what sort of trouble am I looking at?
One Response to “Opposing a discharge.”
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April 11, 2007 at 2:40 pm, Barton Goth GCO Bankruptcy Trustees said:
A creditor always has the ability to oppose a discharge, however in this case, if a creditor can demonstrate that you misrepresented yourself the court can order that the debt survive a bankruptcy. Now the creditor would have to demonstrate this conclusively, and if you could demonstrate the reasoning behind listing the amount in question then likely the court wouldnâ€™t put much merit in the opposition.
Although, you may want to consider looking at filing a consumer proposal, this could allow you to reach a court sanctioned agreement with the creditors to provide a little more to the creditors than they would receive in a bankruptcy, and this may be enough for this creditor to simply leave things alone.
For more information on filing a consumer proposal, you are best to contact a licensed trustee in your area.