Most Americans don’t even consider filing bankruptcy until they’ve exhausted all other options. So, when the courts dismiss your claim, it can feel pretty hopeless. Not only does your claim end immediately, but you also lose all the protection you had while your case was in action. That means your creditors might re-start foreclosure or repossession efforts right away.
That’s the last thing you need to worry about amidst this global pandemic. While a dismissal is disheartening, there is hope. First, you need to identify what went wrong during your claim. Learn why your case may have gotten denied below.
1. You Falsified Financial Data
We’ve all told a white lie once or twice, but it’s a major mistake to attempt to lie during a bankruptcy claim. If you make a false statement or knowingly lie about your finances, then your claim will likely get discharged.
It’s crucial to avoid making this fatal error. On top of losing your right to file for bankruptcy, you could also face criminal charges. Lying in court (under oath) is called perjury.
Even if you somehow “get away” with lying about your finances and get your debts discharged, there’s still a chance that your lender will find out. They can challenge your discharge later, and all your lies could come back to haunt you.
2. You Hid Property
No one likes the idea of losing their property to pay off past debts. Despite that, you still MUST disclose all of your property to the court during a bankruptcy claim. If you try to hide your property, then you could be accused of attempting to defraud the court. This fraudulent action will result in a dismissal of your claim.
Keep in mind that attempting to temporarily “give away” property to friends or family could still be considered an attempt to hide the property. If you’re concerned that a property transfer could impact your claim, then it’s important to reach out to an attorney before proceeding with your claim.
3. You Destroyed Your Financial Records
If you intentionally destroyed certain financial records, then your claim will get denied. It’s never okay to throw away, falsify, destroy, or otherwise fail to keep your financial information. If you’re concerned about getting accused of destroying records, then it’s important to speak with an attorney. Depending on your situation, you may be able to reach out to previous lenders, banks, or other financial institutions to get copies of your past financial information.
4. You Didn’t Take a Financial Management Course
Did you take a personal financial management course? If not, then that could be the reason why your case got dismissed. The U.S. Bankruptcy Code requires you to take at least two instructional courses that include credit counseling and financial management.
You need to take the first course before you even start your bankruptcy claim. You must take the second course while your claim is getting processed. A failure to pay for and attend the classes will impact your case. In most circumstances, your entire claim will get denied.
5. You’ve Already Gotten a Bankruptcy Discharge Recently
Per the law, you can only get a bankruptcy discharge every so often. For Chapter 7, you must wait at least eight years before filing again. For Chapter 13, you need to wait at least six years. If the court realizes that you’ve already gotten a bankruptcy discharge in the past few years, then your case will automatically get dismissed.
Get Help With Your Bankruptcy Claim: Do It the Right Way the First Time
There is one way to avoid these common pitfalls that often lead to a denied or dismissed case. You should hire an experienced bankruptcy attorney before your case goes to trial. This crucial step can help you make the right decisions. If everything goes to plan, then your claim will get approved.
A denied discharge can lead to even more problems. You might lose your property, and the bankruptcy court could even press criminal charges against you if they believe you committed a crime. Rather than risk these potential consequences, speak with an attorney about your specific claim. Our experts are prepared to help. Reach out to us now at (888) 348-2616.
Are You Considering Filing For Bankruptcy?
If you feel bankruptcy is the best option for your financial situation you need to speak with an experienced bankruptcy attorney as soon as possible. Please contact us online or call our office directly at 888.348.2616 to schedule your free consultation.