Was your Chapter 7 bankruptcy denied? If so, you may be wondering what happens next. First, you should understand why your Chapter 7 bankruptcy can be denied.
So, What Will Cause a Chapter 7 to be Denied?
If you are found to hide assets, transfer assets prior to filing, and/or provide incorrect fair market values for your assets, you may be found to use fraud in your case. This will cause your bankruptcy petition to be denied.
It is important that you speak with your attorney in detail about your financial situation. This includes your assets and income. Fraud is a serious, but can be avoided.
What Kind of Fraud Can Occur Before Bankruptcy?
Pre-bankruptcy fraudulent behavior can include the following situations. Any of these situations may result in a creditor asking the court to deny your discharge of a particular debt. This will mean that you still owe it after your case ends.
- Using incorrect information about income or assets to obtain a loan or credit
- Misrepresenting or falsifying financial documents
- Making credit purchases with no intention or repaying.
- Writing a bad check knowingly
- Purchasing luxury items before your filing
- Taking out large cash advances before your filing
- Using deceptive business practices
Keep in mind that all of the above can be avoided and discussed with your attorney. Your bankruptcy trustee will take the time to investigate any fraud claim.
What Kind of Fraud Can Occur During Bankruptcy?
You can avoid the following situations in your bankruptcy by working with your attorney. The following examples will be considered a problem and lead to a fraud accusation:
- Omitting an asset to prevent its sale through the bankruptcy
- Hiding a property transfer (Click here for additional bankruptcy mistakes to avoid)
- Provide false documents to your trustee or the court
- Withholding or destroying documents
- Hiding property from the court or paying someone to help hide property
- Making false statements on purpose in paperwork or hearings
You Can Avoid Bankruptcy Fraud
You can avoid any trouble by being open and honest with your attorney and the court. Bankruptcy fraud is typically done intentionally. In the event you forget to list an asset or expense, you likely will not be found guilty of fraud. Your attorney can help you make amendments to your case if you come across something you forgot to add. On the other hand, purposely hiding an asset, filing a false form, or committing perjury is very different.
Other Reasons a Chapter 7 Can Be Dismissed
- You do not complete your credit counseling courses.
- You do not qualify for a Chapter 7 bankruptcy through the means test.
- You previously filed a Chapter 7 within eight years.
- You previously filed a Chapter 13 case within six years.
- You do not follow orders issued by the judge in your case.
Do I Have Other Options?
Speaking with your attorney is the best way to see if you are eligible to receive a discharge in another case. There are time restrictions that exist if you did not receive a discharge in your case.
- Was your case dismissed due to failure to appear or non-compliance with a court order? Then, you must wait 180 days to file again.
- Did your last case get denied? If so, you may not be able to obtain a discharge for the debts associated with that case. This is why it is important to speak with your attorney.
Need More Information?
At the Law Office of Daniela Romero, we believe in relationships that are based on trust. Before we work together, we would like to get to know you and we would like you to get to know us. We want you to be sure you are the right fit for us and that we are the perfect fit for you. This will allow you to be completely comfortable sharing intimate and difficult details of your case, so we can offer you representation to the fullest extent of the law. Call us today to set up a free consultation.