Failure to complete the post petition financial management course is hazardous to your fresh start; your discharge will be denied.

Your bankruptcy case has two components. One part is to administer assets; the sale of your property to pay your debts; and the other part is the discharge of your personal liability to pay your debts. Consider the scenario where your home is sold and the proceeds from the sale of the home do not pay the total amount you owe your creditors, thankfully, your discharge order releases you from your personal liability to pay the balance owed to your creditors, unless you forgot to complete the financial management course. Now you have lost your property but not your liability.

An Angry Creditor can ask the Court to order the Trustee to examine your acts and conduct to determine wither there are grounds to deny your discharge. The acts and conduct used to deny discharges are as follows: real or personal property transferred within one year of the bankruptcy petition date or even after the petition is filed; or unjustifiable failure to preserve information that shows your financial condition or transactions; or false statements or a false claim, extortion of payment to act or refrain from an act; or the Court finds you are an abusive filer, or you are guilty of a crime under §3156 of title 18, a violation of Federal Securities law, an act of fraud in a fiduciary capacity in purchasing securities; any criminal act, intentional tort, or willful or reckless misconduct that caused serious physical injury or death to another individual; the Court can also take your property away as a civil remedy under §1964 of title 18.

You will have an opportunity to explain satisfactorily to the Court any loss of assets; prove you have obeyed all lawful orders of the Court; responded to all material questions or been granted immunity to respond; that you did not commit any act with the intent to hinder, delay or defraud a creditor by property transfer, made only truthful statements and claims; and provided all information and documents requested in a timely manner with due diligence, you have not been granted a chapter 7 discharge for a case commenced in the last 8 years or a chapter 13 discharge for a case commenced in the last 6 years before this cases’ commencement date unless you paid your creditors 70% in your chapter 13.

Some creditors will agree to a written waiver of discharge. For example, if your child support arrears are more than you can pay in a 5 year chapter 13 plan and Child Support Services will agree to sign a waiver of discharge, you plan can be confirmed, you will receive your full chapter 13 discharge on all of your debts except your child support.

If you obtained your discharge though fraud, acquired bankruptcy estate property through fraud, or made a material misstatement, the Chapter 7 Trustee, the U.S. Trustee and a Creditor can ask the Court to revoke your discharge before your case is closed and up to one year after your Discharge Order.