There are certain instances where a creditor will dispute a bankruptcy discharge. If a creditor decides to dispute the bankruptcy, they must present their case before a court officer and explain the reasons why they feel the debt that the borrower owes them should be excluded from bankruptcy protection.
A creditor that determines they have grounds for disputing a bankruptcy can request a meeting with the borrower who is filing, along with their attorney. This meeting is usually held within 30 days of the initial bankruptcy filing. The bankruptcy court judge or trustee will preside over the meeting, and listen to the reasons for the creditor dispute.
While under oath, the borrower must answer any questions regarding their bankruptcy filing during this discovery process. If the creditor is not satisfied with the borrower’s answers, they can request for further investigation which will either be granted or denied by the court officer.
Once the meeting is over, some creditors will choose to arrange a repayment program for the borrower instead of continuing to contest the bankruptcy filing. This will prevent the creditor from incurring a total loss, should their portion of the bankruptcy be discharged.