Mar. 15, 2021
Common Reasons Chapter 7 Bankruptcy is Denied
Going through bankruptcy is, for many, the best route to take in order to claim back their life. Those who hold a significant amount of debt but have a limited amount of income would likely qualify for Chapter 7 bankruptcy. However, simply meeting the requirements does not mean being accepted as well. Here are some of the most common reasons why an individual would be denied Chapter 7 bankruptcy.
One of the things that occur when a person goes through bankruptcy is needing to sell off assets to pay back creditors. According to the Law Office of Mercedes O. Chut, a person’s main home is protected from this sell-off, other assets such as extra cars or homes are not. If you attempt to give away an asset to a friend/family member to avoid losing it, you may be committing fraud, and thus the courts would deny your Chapter 7 bankruptcy. A Greensboro NC bankruptcy attorney would recommend disclosing these types of actions along with all the assets you have.
Failed to Take a Financial Management Course
The courts do not want to have the public constantly making these financial mistakes throughout their lives. Thus they will order people to take a personal financial management course. The courts, along with a bankruptcy attorney high point individual, will keep a record of your attendance. If you fail to attend these classes, you are likely to be denied from going any further with the bankruptcy process.
Making or Filing False Statements
When a bankruptcy attorney Greensboro firm begins to advise their client, they will tell them to make sure that every detail within their paperwork is current and accurate. Unfortunately, some people will take the opportunity to lie about their current income in order to pay less or have extra debt taken off their record. This, of course, constitutes making false claims on legal documents.
If you have been denied by the courts and are thus not allowed to proceed with your chapter 7 bankruptcy process, it is highly recommended to seek the services of an attorney. An attorney experienced in these matters can greatly help clarify any honest mistakes you have made to the courts.