Auto Accident Law 101

Going All The Way: Reasons Bankruptcy Cases Can Be Dismissed

17 August 2015

Everett Cook

Going through bankruptcy is hard enough, with the hashing out of your financial and emotional issues. Discharging debt gives you the freedom to start over, but the road to recovery can be long. One of the worst things that can happen is your bankruptcy case being dismissed, or thrown out, prior to your debt actually being discharged. Here are three reasons your case can be dismissed and how to avoid these pitfalls.

Incomplete information

Incomplete information is one of the top reasons bankruptcy cases get dismissed and also one of the biggest problems during a bankruptcy case. Incomplete information could be anything from not completely filling out forms to not declaring the true value of items.

To combat the forms issue, make sure that your bankruptcy attorney is placed in charge of all of the official forms that must be completed. This should not be the first rodeo for your attorney, so they should know what needs to be filled out and turned in and the timeline for these matters. In order to provide proper values for declaring items, have all of your assets appraised. Everything from diamond rings to properties needs to be appraised and reported at its true value.

Hiding assets

Hiding assets is a reason for dismissal and also a reason to throw bankruptcy applicants in jail in accordance with bankruptcy law. Anything that you owned within around six months of applying for bankruptcy needs to be properly documented and either kept or sold with the money from the sale being reported.

Many applicants for bankruptcy attempt to become eligible for bankruptcy by moving assets into the name of others. Some even go so far as to bury assets in their backyard so that no one is the wiser. If any of this is found out while combing over your documents, you can be placed in jail. Being totally honest is the best way to go through bankruptcy, as the legal system knows all of the tricks.

Not attending credit counseling

Credit counseling is a mandatory part of being allowed to file for bankruptcy. Going through credit counseling should aid you in getting back on your feet and not having to go through a bankruptcy again. If you do not attend the sessions and blow off counseling, understand that this can and will get your case dismissed. Instead, take the time to go through the counseling and learn how to get yourself in better condition for a better financial future. 

For more information about the bankruptcy process, contact a professional such as Anthony Inserra Attorney at Law.

Share

Search