Hi, I'd like to assist you with your bankruptcy questions this morning.
When a Debtor waives his/her/their discharge, this prevents any of their debts from being discharged in the bankruptcy.
If this is the case you were discussing in previous posts, however, where the Debtor DID receive a Chapter 7 discharge, then filed a new Chapter 13 shortly thereafter, this changes the answer to your question. Did you receive the "Notice to Creditors: Discharge Waived" in the 2012 Chapter 7 case or in the newly-filed Chapter 13 case?
This is a different case that was filed in 2011 and is a Chapter 7 case. Why would a debtor waive his discharge? What would be the purpose in even filing bankruptcy?
A Chapter 7 Debtor would almost never want to waive their discharge. In fact, I would NEVER allow a client to voluntarily waive their discharge - I'd withdraw from a case involving a situation where a client insists on doing so. I don't know the precise factual circumstances of the bankruptcy case you're dealing with, but a Debtor would typically only agree to voluntarily waive their discharge as part of a deal with the Trustee when the Trustee has found some evidence of potentially criminal activity (i.e. embezzlement, hidden and/or undisclosed major assets, etc.). If the Debtor in this situation doesn't agree to waive their discharge, the Trustee will turn the case over to the US Trustee and DOJ for criminal prosecution. The rationale for filing is similar to that of any other fraud or fraud-like crime - the Debtor must have believed they wouldn't be caught doing whatever illegal things they were doing.
For you as a creditor, this is an EXCELLENT outcome in a Chapter 7 case. After the case is closed without discharge, you can pursue collection efforts as though the Debtor had never filed their Chapter 7 case.
Thank you! As always, EXCELLENT and timely advice from you!
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