Reasons your Chapter 7 bankruptcy case might be dismissed

Get informed about filing Chapter 7 bankruptcy. Learn what things could get your case dismissed and how to avoid them.

When filing bankruptcy, many people choose to file Chapter 7. This form of bankruptcy allows a person to completely dismiss his or her debts and pay back only what he or she can through the sale of assets. Anything not paid off gets wiped out, and the person is free from dischargeable debts. Laws in this area, though, have changed in recent years, meaning there are some stipulations that could make a person ineligible for filing. In addition, there are other situations where a case could be dismissed with the discharge of debts.

Not meeting requirements

Not every person can file a Chapter 7 bankruptcy. According to the United States Courts, there are income requirements that must be met. A “means test” is conducted to ensure a filer is within the limits. This limitation is to prevent the abuse of the bankruptcy system. Such cases may also be changed to a Chapter 13 case.

To file a case, every person must pay certain set fees to the court. If these fees are not paid, the case is dismissed. This requirement may be waived for low-income filers, but proper documentation must be provided and paperwork must be filed.

It is also essential for a person to use the proper forms to file the case. According to the Southern District of Florida United States Bankruptcy Court, it is up to the filer to assure he or she has the most current forms and has every required form. Not filing the proper forms and providing all required information can lead to a case dismissal. This also includes providing requested documentation, such as tax forms.

Other Missteps

According to Peachtree Financial Solutions, there are additional things a person can do to get his or case thrown out of bankruptcy court. A big one is not showing up to required meetings or court dates. Judges do not look favorably upon those who do not show up for a scheduled event. Another common issue is not taking the required credit counseling course. This is part of the new requirements and easily overlooked. However, it is required to file.

Finally, this biggest mistake a person can make is lying in the paperwork or trying to hide things. This is actually a crime and results in the bankruptcy case being dismissed and possibly criminal charges being filed for fraud.

When a person files for bankruptcy, it is essential to follow all the rules and guidelines. Not complying can get a case thrown out and may lead to problems refiling. For answers to bankruptcy questions, contact Kingcade Garcia McMaken