Three of the Most Common Reasons a Debtors’ Bankruptcy Petition is Denied

Three of the Most Common Reasons a Debtors’ Bankruptcy Petition is Denied

Many people who are new to the bankruptcy court system believe that their bankruptcy will be approved without question. The truth is that it’s possible that it’ll be rejected. Working with a nationally certified debt reduction agency that knows how to file legally is the best approach to prevent this problem. For a free bankruptcy examination, call Law Offices of Terrence Fantauzzi at (909) 552-1238, or read on to learn three of the most common reasons bankruptcy filings in California are dismissed.

You failed to meet a deadline

Keep in mind that the bankruptcy courts are quite busy. Hundreds of other people are filing for bankruptcy at the same time as you. While it may appear absurd for a court to dismiss your bankruptcy filing just because you missed a deadline established by the bankruptcy court, the truth is that if exceptions were allowed, debtors would be able to postpone filings indefinitely. Both federal and state courts have held that they lack the ability to overturn a bankruptcy denial based on a missed deadline.

You made a blunder with the paperwork

Let’s face it: declaring bankruptcy, whether Chapter 7 or Chapter 13, necessitates a substantial amount of paperwork. Pay stubs, comprehensive mortgage information, prior tax returns, vehicle leases, bank statements, and other documents may be necessary, depending on your position. The majority of data will be requested by your bankruptcy attorney in order for them to best represent you, but if the court requests documents directly and you either do not submit them or provide false information, your case may be denied.

You have been found guilty of fraud by the bankruptcy court

The bankruptcy court will grill you with inquiries. They are straightforward questions about your bankruptcy and financial position. These questions are designed to help you avoid being a victim of fraud. Not identifying a debt or creditor, not disclosing money you’ll receive after the bankruptcy is completed (such as an inheritance), and not notifying your attorney about other financial accounts you have are all examples of possible fraud.

These cases of fraud are taken very seriously, and judges will not hesitate to deny a bankruptcy if fraud has been shown. Worse, a bankruptcy trustee may prevent you from ever being able to re-file against the funds you were attempting to declare.

A minor blunder can turn into a major catastrophe

As you can see, even a minor blunder in a bankruptcy procedure can have a significant impact. The repercussions can range from having to start all over to not being able to declare bankruptcy at all. We are skilled in all sorts of bankruptcy at Law Offices of Terrence Fantauzzi, and we are here to help you through the entire process. For a free bankruptcy evaluation, call (909) 552-1238 immediately.

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