Reasons for a Bankruptcy Dismissal

Bankruptcy Lawyer in Columbus Georgia

Bankruptcy is believed to be the best option for people in financial trouble and neck deep in debt. The bankruptcy law as decreed in the US Bankruptcy Code provides protection to people truly in need of government assistance to discharge their debts. If the system is abused in any way, it is natural to assume that the court can turn against the filer.

If the bankruptcy court’s rules are not followed or if incorrect, fraudulent or incomplete information is furnished in the petition the bankruptcy case can be dismissed. If the violation is found to be very serious so will be the penalty and in extreme cases judgment against discharge of debts, loss of exemptions and other protections can be withdrawn by bankruptcy court.

Incomplete or Incorrect Filing

There are many forms to be filled in and many documents to be submitted along with the bankruptcy petition. If the forms for the purpose are incomplete or filled with information that is not accurate or is incorrect, your bankruptcy case can be dismissed. If you submit wrong forms also there are chances that your petition can be denied.

Abuse

Your bankruptcy case petition can be denied if it is found that you filed for bankruptcy in bad faith by defrauding your creditors. This kind of charge is often seen in cases where debtor uses up all his credit card limits and then files for bankruptcy immediately. Thus if proved in court that your incurred expenses after planning your bankruptcy, the court can veto your application on charges of abuse. Such incidences can be brought to court’s attention by creditors and sometimes debtor can be charged with a criminal offense in addition to denial of bankruptcy.

Disqualification

Credit counseling has been made mandatory for all bankruptcy petitions and failure to comply with this rule can result in bankruptcy petition denial. Apart from this a means test is necessary for filing for chapter 7 and chapter 13 requires a five year plan and a debt ceiling. If these qualifications are not met, it is quite probable that your bankruptcy petition can be invalidated or ask you to re-file.

Failure to Disclose

If you do not disclose all your assets, your bankruptcy case can be dismissed. You must disclose all your debts and assets to be fair to your creditors. If you try to hide anything or fail to disclose any asset, it is quite probable that you may lose your bankruptcy protection. Thus it is of utmost importance to come clean while filling up bankruptcy petition.

Types of Debt

If your debt consists of tax obligations, student loans, child support, alimony etc your petition will be rejected since these debts are not discharged in a bankruptcy.

If you are searching for Columbus GA bankruptcy attorney or interested in Chapter 7 or Chapter 13 even need a Bankruptcy lawyer, then we can help.

Our Chapter 7 - Chapter 13 bankruptcy law firm is based in Columbus, GA. Our bankruptcy lawyers handle debt relief cases in and around Columbus, Chattahoochee County, Harris County and Muscogee County.