By Anerio Altman

The strongest remedy available to a creditor or interested party in the Bankruptcy Court is to request that the court deny an individual his or her discharge pursuant to 11 U.S.C. Sec. 727(Hereinafter “727”).  A 727 cause of action occurs when a party requests that the court deny the Debtor their discharge for approaching the court dishonestly, or destroying property of the estate.

There are three types of 727 causes of action that may arise:  727(a)(2), 727(a)(3) and 727(a)(4).

These state as follows:

“Destruction of Property”:  11 U.S.C. 727(a)(2)

(2) the debtor, with intent to hinder, delay, or defraud a creditor or an officer of the estate charged with custody of property under this title, has transferred, removed, destroyed, mutilated, or concealed, or has permitted to be transferred, removed, destroyed, mutilated, or concealed—

(A) property of the debtor, within one year before the date of the filing of the petition; or

(B) property of the estate, after the date of the filing of the petition;

“Hiding your personal history” 11 U.S.C. 727(a)(3)

(3) the debtor has concealed, destroyed, mutilated, falsified, or failed to keep or preserve any recorded information, including books, documents, records, and papers, from which the debtor’s financial condition or business transactions might be ascertained, unless such act or failure to act was justified under all of the circumstances of the case;

“Lied on the Petition” 11 U.S.C. 727(a)(4)

(4) the debtor knowingly and fraudulently, in or in connection with the case—

(A) made a false oath or account;

(B) presented or used a false claim;

(C) gave, offered, received, or attempted to obtain money, property, or advantage, or a promise of money, property, or advantage, for acting or forbearing to act; or

(D) withheld from an officer of the estate entitled to possession under this title, any recorded information, including books, documents, records, and papers, relating to the debtor’s property or financial affairs;

The result of a verdict in favor of any of these three causes of action is a complete denial of the Debtor’s discharge and a determination that the debts attached to the Debtor’s case remain non-dischargeable…FOREVER.

727 causes of action may only be resolved by a formal trial in the Bankruptcy Court in an Adversary Proceeding.