To decrease the risk of a rejection, simply hire a bankruptcy attorney
Chapter 7 bankruptcy is actually one of the easiest bankruptcy filings to complete. However, this doesn’t necessarily mean your bankruptcy will go off without a hitch—especially if you try to handle the filing on your own. Here are the top 5 errors you might make that could cause your filing to get rejected.
You Flunk the Means Test
Chapter 7 bankruptcy is an excellent way to get rid of all kinds of unsecured debts, such as credit card debts. However, it is not available to everyone as there is a means test attached to the filing process. This means test is designed to prevent individuals from choosing Chapter 7 when they actually have enough assets or disposable income to be able to repay their debts, but are choosing instead to neglect their payments in order to maintain a high standard of living. It is very easy to make a mistake on your means calculation and this could result in your Chapter 7 filing being rejected.
Your Timing is Off
When filing for bankruptcy, certain time constraints must be considered. For example, if you have previously had a Chapter 7 bankruptcy go through, you cannot file for another one until 8 years after that prior filing date. You will also need to avoid filing too soon after making a large purchase on your credit card or repaying a loan to a family member or other “preferred creditor”. Missing any deadline by even a day or two could derail your entire bankruptcy proceeding.
You Made a Mistake in Your Paperwork
If you fail to report even one asset or valuable possession, or leave even one creditor out of your filing, your entire bankruptcy petition might be rejected. In the court’s eyes, it really doesn’t matter if the omission was an honest mistake—you will still get rejected.
You Don’t Have Your Tax Records
Often, when individuals are struggling with their finances they also have issues with the IRS. They may not earn any official income or they may earn so little income that they do not end up filing their taxes. This can present a big roadblock for your bankruptcy filing as you are required to present your records for the bankruptcy trustee’s review.
Someone Challenges Your Filing
There are many different reasons that a creditor or the bankruptcy trustee may decide to challenge your filing. Typically, challenges stem from a perception that you have attempted to hide assets, made false statements about your finances, or otherwise attempted to mislead the court or abuse the bankruptcy process.
Don’t Risk a Rejection! Hire a Bankruptcy Attorney
When you are in need of financial relief, any delays can be brutal, so naturally it’s important to do everything in your power to get your filing approved the first time. The good news is, you can dramatically decrease your risk of having your Chapter 7 filing rejected simply by hiring a bankruptcy attorney from California Bankruptcy Relief to prepare your filing for you. Call us at 951-755-1000 to learn more.
