Build Your Business Drop to LL.com Full View
Talk to a Lawyer Today
- Find Bankruptcy Lawyers, Consumer Bankruptcy Attorney Finder
- Donald Trump & Other Famous Bankruptcy Filers
- Will the Second Obama Term Bring About Bankruptcy Reform?
- The Grass is Greener After Bankruptcy
- How Bankruptcy Protection and Foreclosure Defense Intersect
- Legal Strategies Bankruptcy Attorneys Use to Keep Assets from Creditors
- More Bankruptcy Articles
Can A Court Deny My Bankruptcy
It is important that people considering filing for bankruptcy be familiar with their state's and federal laws regarding who can and who cannot file for bankruptcy. It is also important to know how often one can file, what the rules of bankruptcy are, and what is needed to file because it is possible for a judge to deny a bankruptcy discharge.
The Most Common Reasons Courts Deny Bankruptcy
- The first reason a judge will deny a bankruptcy involves the individual not being eligible for a discharge. This could be because the individual is filing incorrectly, or they are filing as their business when they should be filing as an individual, or vice versa.
- The second most common reason is that the person is filing too soon after a previous bankruptcy discharge. For example, federal laws state that a person cannot file for Chapter 7 bankruptcy within eight years of a previous Chapter 7 discharge. Doing so will cause a judge to automatically throw the case out.
- The third most common reason for denial is abuse. A judge can deny a discharge on the basis of abuse if the person filing has enough disposable income and assets to reasonably pay their debts. Sometimes, this denial can cause a person to re-file as a Chapter 13 bankruptcy, which allows the debtor to restructure their debt and pay it off over time.
Courts Will Deny A Bankruptcy for Incomplete or Improper Paperwork
It is important to know what paperwork your bankruptcy filing requires. If you submit paperwork that is incorrect or incomplete, the judge will deny a discharge. This includes failing to disclose all asset information to the appointed trustee and not attending the Meeting of Creditors. If a case is dismissed for any of these reasons, the judge can attach special restrictions to future attempts to file, making it nearly impossible to successfully file in the future.
Filing for bankruptcy is not a guarantee that all of your previous financial problems will just go away. The filing process is long and arduous, with many stops along the way. Problems during the process are serious, and a judge is not required to grant anyone a discharge in their bankruptcy.