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.”

, 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 wouldn’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.

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