The Bankruptcy Code exempts certain kinds of debts from Discharge because of the way the debt arose. Fraud, false financial statements, embezzlement, larceny, defalcation of a fiduciary and other reasons may work in a Creditor’s favor to preserve the debt from discharge The debt will exist and be enforceable after the Debtor receives a discharge for other debts.
To obtain a Decree where the debt is not discharged requires an Adversary Proceeding which is essentially a civil law suit in the Bankruptcy Court. The Creditor generally must prove both the debt and the factors that render it Non-Dischargeable.
In his 40 years of experience, Attorney Tom Reilly has successfully handled a wide variety of proceedings exempting debts from Discharge.