Grounds for Denial of Discharge: A Chapter 7 discharge may be denied for any of the reasons described below, in which case all of the debtor's debts will survive bankruptcy. [B.C. §727(a)(l)-(10)] .

      Debtor not an individual: Under Chapter 7, only an individual may receive a discharge. Therefore, other persons (e.g., corporations and partnerships) will not be granted a discharge, even though they may qualify to be debtors under Chapter 7 and may achieve an orderly liquidation of their estate while under the Bankruptcy Code's protection, including that provided by the automatic stay. [B.C. §727(a)(l)]

     Transfer of property with intent to hinder, delay, or defraud creditors:  The debtor will be denied a discharge if she transferred, removed, concealed, mutilated, or destroyed property of the debtor, within one year before the petition was filed, or property of the estate, after the petition was filed, with the intent to hinder, delay, or defraud a creditor or an officer of the estate entitled to possession of the property. [B.C. §727(a)(2); In re Chastant, 873 F.2d 89 (5th Cir. 1989)] (1) Example: On May 1, Creditor obtains a judgment of $200,000 against Debtor, who is insolvent and whose only major asset is property known as Blackacre. On May 21, before Creditor has time to record the judgment as a lien against Blackacre, Debtor sells Blackacre to Friend for $110,000. The property is valued on Debtor's books at $250,000, and by Creditor's appraiser at $450,000. On May 22, Debtor executes a Chapter 7 petition, which she files on May 28. Creditor files a timely objection to Debtor's discharge. Since Debtor's transfer of Blackacre to Friend was made with the intent to hinder, delay, or defraud Creditor, and occurred within one year before bankruptcy, the court will deny Debtor a discharge under Chapter 7.

      Involuntary Conversion:  Absent a request by the debtor, the court may not convert a Chapter 7 case to one under Chapter 12 or 13. |B.C. §706(c)] However, the court may convert a Chapter 7 case to one under Chapter 11, upon a request by a party in interest, after notice and a hearing. [B.C. §706(b)]

     Conversion of a Chapter 7 case to another chapter of the Code requires that the debtor be eligible for relief under the particular chapter to which the case is being convened. (B.C. §706(d))

Substantial abuse of chapter 7.