Many people who are new to the world of bankruptcy court assume that it’s essentially a given that their bankruptcy will be approved. The reality is that it’s very possible that it could be denied. The best way to avoid that issue is to work with a federally approved debt relief agency that knows how to file correctly. Call The Law Offices of Paul Y. Lee at 951-755-1000 for your free bankruptcy evaluation, or read on to learn three of the most common reasons bankruptcy filings are denied in California.
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You missed a deadline
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You made a mistake on the documentation
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The bankruptcy court determines that you committed fraud
Remember that the bankruptcy courts are busy. There are hundreds of people petitioning for bankruptcy at the same time you are. While it may seem unreasonable for a court to throw out your bankruptcy filing simply because you missed a deadline that was set by the bankruptcy court, the truth is that if they made exceptions, then debtors could continue to push bankruptcy filings back indefinitely. Both federal and local courts have repeatedly ruled that they don’t have the authority to overrule if your bankruptcy is denied for missing a deadline.
Let’s face it, there is a lot of documentation required to declare bankruptcy, whether you’re declaring Chapter 7 or Chapter 13. Depending on your situation, you may be required to provide pay stubs, complete mortgage information, previous tax returns, leases for your vehicles, bank statements, and much more. Most of this is going to be asked for by your bankruptcy attorney so they can best represent you, but if the court asks for documents directly and you either don’t provide them or provide incorrect information, then your case could be denied.
You will be asked questions by the bankruptcy court. They are simple questions involving your bankruptcy and your financial situation. The point of these questions is to prevent fraud. The list of things that could constitute fraud include not listing a debt or creditor, not disclosing money you’ll come into after the bankruptcy is over (like an inheritance), and not telling your attorney about other financial accounts you have.
These cases of fraud are taking very seriously and judges will not hesitate to deny a bankruptcy if they can prove fraud was taking place. What’s worse, a bankruptcy trustee can actually make it so that you’ll never be able to re-file against the funds you were trying to declare.
A simple mistake can be a big deal
As you can see, making a small mistake in a bankruptcy proceeding can have a very serious affect. The consequences can range from something as simple as having to start over, to something as severe as not being able to declare bankruptcy at all. At The Law Offices of Paul Y. Lee, we are experienced in all types of bankruptcy and are here to be with you through the entire process. Call us today at 951-755-1000 for a free bankruptcy evaluation.
