A Chapter 7 bankruptcy could be the answer you are looking for to relieve you of overwhelming debt that you know you will never be able to pay back. A Chapter 7 bankruptcy discharges all your qualifying debts and allows you to start over financially.
If you qualify for a Chapter 7 bankruptcy and go through the proper steps, your bankruptcy is typically approved by a bankruptcy judge. However, this is not a guarantee and a court could deny your bankruptcy.
Denial has major consequences
Denial of bankruptcy is a serious matter. You lose out on your chance to be free of your qualifying debts. Additionally, if you file another Chapter 7 bankruptcy in the future it generally cannot include those debts and you remain responsible for paying them.
Bankruptcy is typically denied when a court suspects you lied or committed fraud, such as lying about your financial situation or hiding assets.
For example, your bankruptcy could be denied if:
- You lied to the court or your creditors
- You did not explain any loss of your assets
- You hid, destroyed or did not keep proper financial records
- You did not follow an order of the bankruptcy court
Your bankruptcy could also be denied for relatively minor reasons, such as failing to complete an approved financial management course. When you receive a Chapter 7 bankruptcy discharge, you cannot file for another Chapter 7 bankruptcy for eight years, so your bankruptcy could be denied for filing too soon.
Tips for a successful discharge
The best way to avoid a denial of your bankruptcy is to always be honest about your financial situation and do not hide any assets. Keep detailed financial records that document your assets, debts and financial transactions. Follow all court orders and do not miss any required steps or deadlines in the bankruptcy process.
Overall, thorough preparation and an understanding of Florida’s bankruptcy laws can reduce your risk of a denial and increase the chance of a successful discharge.