In all Chapter 7 situations (including no asset cases) where the debt is $3,000 or
more, review the claim folder for possible referral to the Chief Counsel to consider
filing an objection to discharge.
Be prepared to provide additional information and to work with the Chief Counsel in
If a claim meets the guidelines in GN 02215.196B., proceed as follows:
Forward a copy of the bankruptcy notice (with the date set as the last day for objecting
to discharge circled in red), by memorandum, to the Chief Counsel.
Briefly explain how the debt occurred, the amount of the debt and any adjustment or
Advise the Chief Counsel if adjustment was stopped as a result of the bankruptcy notice
and whether fraud is/was established or misrepresentation is involved. Explain the
basis of the misrepresentation (e.g., debtor returned to work but failed to report).
If a Proof of Claim will be filed (GN 02215.195G.), indicate that it will follow as soon as possible.
If an objection to discharge must be received by the court within 15 working days
after the PC learns of the bankruptcy proceeding or the time within which an objection
should have been filed has expired, call the Chief Counsel's office and explain the
situation. If appropriate, the Chief Counsel may be able to file an extension request
with the court.