I often get asked when I meet with someone who is thinking about filing bankruptcy, whether or not there is any chance that their bankruptcy would be denied. They are unfamiliar with the bankruptcy process and worried that something might interfere with their ability to get the fresh financial start that they desperately need.
Before you get too concerned, you should know that it is extremely rare for the bankruptcy court to deny someone’s discharge in chapter 7.
There are five primary reasons why you might not get a discharge of your debts if you file chapter 7 bankruptcy.
- You received a discharge in a previous chapter 7 bankruptcy that was filed within eight years of filing your current chapter 7 bankruptcy; or you received a discharge in a previous chapter 13 that was filed within six years or your current chapter 7 bankruptcy.
- Your household income exceeds the limits allowed under chapter 7 bankruptcy.
- If you conceal any information about your income, assets, debts, and expenses; or engage in any fraud during the bankruptcy process.
- The court could deny you the discharge of a specific debt, as opposed to all of your debts, if you used a line of credit excessively within the three months before you filed your case.
Most people will go through the chapter 7 process without any bumps in the road, and will receive a discharge of their dischargeable debts approximately four months after they file their case. An experienced Denver bankruptcy attorney can guide you safely through the process and answer all of your questions.
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