Concerned About Your Chapter 7 Bankruptcy Being Denied?
I get it. You’re nervous about filing Chapter 7 bankruptcy. You’ve talked to so many people and have been mining the internet. You’ve heard the horror stories.
Take a deep breath. Let’s turn down the noise. Let’s talk about the very few reasons a Chapter 7 bankruptcy can be denied.
There are essentially four reasons your Chapter 7 bankruptcy will be denied.
Your Chapter 7 Bankruptcy Will Be Denied Because Your Income Is Too High
In order to qualify for Chapter 7 bankruptcy, your household income has to be under the median income for your household size for the state you live in at the time you file.
We’re going to collect that information to prepare your petition, so we’ll know whether your income qualifies or not. There are some limited situations where a person can qualify for Chapter 7 even if their income is over the median income. Again, though, we’ll explore that option before we even file and give you our opinion on the chances of success.
Usually we can cover this information at our initial consultation. So before we’re done, you’ll know whether or not you’re even eligible for Chapter 7 bankruptcy. If you’re concerned about being over the median income, bring as much information and documentation to the consultation as possible. The more information we have, the easier it will be to give you a thumbs up or a thumbs down about being able to file Chapter 7.
Your Chapter 7 Bankruptcy Will Be Denied Because You Filed Bankruptcy Too Recently
Yes, you can file bankruptcy more than once. I’ve had clients who have filed multiple times. But you may need to wait to file if you have filed a Chapter 7 or a Chapter 13 before.
If you have filed a Chapter 7 before and received a discharge in that case, you need to wait eight years from the time you filed the previous case to file another Chapter 7. If your case was dismissed, you may only need to wait a few months to file another Chapter 7. You can file a Chapter 13 bankruptcy four years after a Chapter 7 bankruptcy where you received a discharge.
If you have filed a Chapter 13 before and received a discharge, you’ll need to wait six years from the time you filed your Chapter 13.
Your Chapter 7 Bankruptcy Will Be Denied If You Do Not Cooperate With The Trustee
About a month after you file your Chapter 7 bankruptcy, you and your lawyer will meet with the Chapter 7 bankruptcy trustee. It’s a short meeting that will cause you lots of unnecessary stress. An experienced bankruptcy lawyer will start preparing you for the meeting during your initial consultation.
The trustee’s job is to see if there is anything she can take to pay your creditors. She is primarily looking for any assets you have that are worth more than what the bankruptcy rules can protect. Again, a good bankruptcy lawyer will prepare you for the meeting and what the trustee will be looking for.
Let’s say you have to turn over your tax refund, which is probably the most common item the trustee will take in Colorado. If you don’t turn over the refund and spend it instead, the trustee will ask the court to deny your Chapter 7 bankruptcy. The court will dismiss your case and you’ll be in the same position that you were in before you filed bankruptcy, except you won’t be able to refile a Chapter 7 bankruptcy to get rid of those debts.
Your Chapter 7 Bankruptcy Will Be Denied If You Lie To The Trustee Or On Your Petition
The trustee will put you under oath before your meeting. You have to answer all of her questions truthfully. You also have to answer all of the questions truthfully on your petition (the paperwork that gets filed with the bankruptcy court when someone declares bankruptcy). If you fail to truthfully disclose all of your assets and the questions related to certain financial transactions, the bankruptcy court can deny your Chapter 7 bankruptcy.
Even worse, you could go to jail.
Talk To A Top-Rated Denver, Colorado Bankruptcy Attorney To Make Sure Your Chapter 7 Bankruptcy Succeeds
Our goal is to make sure you make it through your Chapter 7 bankruptcy smoothly. We’ll help you get rid of as much debt as possible while maintaining as many of your assets as possible. If we think your Chapter 7 bankruptcy will be denied, we’ll guide you to other options.
We offer free consultations to people who are considering bankruptcy. The easiest way to schedule an appointment at a time that is convenient for you is by clicking on our scheduling page.
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