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Do-It-Yourself Bankruptcies Can Lead to Denials in Court



It's ironic, but it costs money to file for bankruptcy. You'll have to pay to file for bankruptcy, pay if you want to change the type of bankruptcy and pay if you want to reopen a bankruptcy filing. Experts also recommend that you spend the money to hire a bankruptcy lawyer to guide you through the process. Do it yourself and you run the risk of incurring unnecessary fees, getting your bankruptcy petition rejected by the court or having a judge refuse your request to discharge a debt.

Reasons Why a Bankruptcy Filing Is Denied

Commonly made mistakes can lead to a Chapter 7 or Chapter 13 bankruptcy petition to be rejected. Your petition may be rejected if there are errors in your bankruptcy petition or the petition is incomplete. Your case might also be thrown out if you are only trying to discharge debts (such as student loans, tax debt or child support) that can't normally be discharged in bankruptcy.

When you use a bankruptcy attorney, your lawyer will review your financial situation and only include eligible debt in your bankruptcy filing. An attorney will also ensure that your paperwork is accurate and complete.

Having your bankruptcy petition thrown out may sound bad, but that's not the worst mistake that DIY bankruptcy filers face.

The goal of personal bankruptcy is to get your debts discharged, or permanently forgiven. But in some instances, the bankruptcy judge may deny a discharge. If that occurs, you could face criminal charges. That's because a denied discharge often means a bankruptcy petitioner has hidden assets, lied on the bankruptcy petition or otherwise been dishonest during the bankruptcy process.

In addition, a denial of discharge doesn't automatically stop your bankruptcy case. So the trustee may still sell off your assets and use the money to pay your creditors.

Do you want to do your bankruptcy right-the first time? Hire an experienced consumer bankruptcy lawyer to guide you through the process.

Visit LawyerLocator for more information about personal bankruptcy or to hire a bankruptcy lawyer in your area.

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