Why might a chapter 7 bankruptcy discharge be denied?
• The debtor falsified his or her schedules or otherwise committed perjury in connection with the bankruptcy case. • A debtor whose debts are primarily consumer in nature and whose family income exceeds the median is required to complete a “means test” form. If, under standards contained in the bankruptcy code, the debtor is found to have a certain amount left over that could be paid to unsecured creditors, the bankruptcy court may decide that a discharge is not appropriate unless there are extenuating circumstances. • The debtor transferred away assets in the one year prior to filing with the intention of hindering delaying or defrauding a creditor. • The debtor has failed to provide a satisfactory explanation for a loss of assets or otherwise failed to cooperate with the bankruptcy trustee. Will I have to pay income taxes on the cancelled debt? No. What are the North Carolina exemptions? **If a debtor has lived in North Carolina for less than 2.5 years then he/she may not be eligible
