When deciding whether or not bankruptcy is the right solution to your financial situation, you have to think about all of the circumstances involved and make sure that it’s the best choice.
Does bankruptcy ever get denied, though? And if so, for what reasons? Here’s what you need to know.
What U.S. Bankruptcy Laws Say
According to the U.S. Court, Chapter 7 discharges may be denied for “any of the reasons described in section 727(a) of the Bankruptcy Code, including failure to provide requested tax documents; failure to complete a course on personal financial management; transfer or concealment of property with intent to hinder, delay, or defraud creditors; destruction or concealment of books or records; perjury and other fraudulent acts; failure to account for the loss of assets; violation of a court order or an earlier discharge in an earlier case commenced within certain time frames (discussed below) before the date the petition was filed.”
So, if you don’t provide the right paperwork, try to hide property or assets, or are trying to commit some kind of fraud or other financial crime, you’re probably going to get denied. If you don’t complete the required financial management course, you’ll also find that the courts may reject your discharge.
Why Denials Happen
Essentially, cases are denied for one of two reasons:
- A lack of proper paperwork and information
- Suspected fraud or illicit activity
For example, if someone has a history of racking up debts and then dodging creditors, and has filed bankruptcy in the past, the courts might look at that and decide that enough is enough and they’re on their own this time.
If it’s an issue of improper paperwork or filing processes, there is a good way to avoid that in your case. Hire a bankruptcy lawyer who can handle everything on your behalf and make sure that deadlines are met, documents are gathered, and your case is as close to perfect as it can get before you head into court.
If it’s determined after the fact that the debtor was fraudulent or deceptive in obtaining their bankruptcy, it may be revoked by the courts. There are also other circumstances that may result in a discharge being revoked, although it is rare. And if you have a bankruptcy lawyer helping you through the process, you shouldn’t have anything to worry about when it comes to getting your bankruptcy discharge approved and finalized.
Reach Out to An Attorney Now
The team at DeLuca Associates is ready to help you with your Chapter 7 bankruptcy filing, no matter what kind of circumstances you’re dealing with. We can help you determine the best course of action, walk you through the process, and take care of all the complex steps for you so that everything is done according to the law.
Plus, we’ll be there to reassure you every step of the way and help you get your financial life back, no matter where you’re currently at. Contact us now for a free consultation.