Five Ways Your Bankruptcy Case Could Be Denied

The process of filing for bankruptcy can be stressful, leading to an overwhelming loss of confidence and direction about how to approach your financial situation. There are steps you must complete to prevent your bankruptcy from being denied. Otherwise, your case will result in dismissal. 

Having competent representation from a Florida debt defense lawyer that understands state and federal law and the documentation requirements of the court can be the difference in your case being heard or denied. Being equipped with the proper debt defense strategy and consumer protection defenses will help you more peacefully navigate the bankruptcy process in Florida.

Reasons for Bankruptcy Denial

Preparation for bankruptcy proceedings requires work on your part. Below are five common reasons for bankruptcy denial. 

Failure to Attend Credit Counseling 

Before filing for bankruptcy, credit counseling must be completed within 180 days through an approved provider. You are required to submit a certificate of completion for credit counseling. Failing to do so can result in your case being denied.

Previous Filing

As an individual, you can file three types of personal bankruptcy. 

• Chapter 7 is the most common option and referred to as liquidation, even though most of the debtor’s assets are declared to possess insufficient equity for repaying creditors. Most likely, you will retain your property and have your debts, except those specified by the court, erased.
• Chapter 13 is considered reorganization and allows debtors who have fallen behind to enter into repayment plans protecting their homes from foreclosure or repossession.
• Chapter 11 was only available to businesses but now can be filed by individuals with debt above the limit of Chapter 13. Chapter 11 is often considered a refuge for real estate investors, celebrities, and famous athletes. 

If you have previously filed for bankruptcy and are filing again, you must wait the appropriate length of time to file a different bankruptcy claim. Those time limits will depend on your previous filing and what your intentions are to file currently. Failure to wait will result in your case being denied.

Improperly Handling Filing Fees

A filing fee must be paid with each bankruptcy petition. The fee must be paid within seven days of filing unless you have been granted a fee waiver or permission to pay the amount in installments. Proper applications must be submitted.

Deficient Petitions and Papers

There are required documents that must be submitted to the court when filing for bankruptcy. The court will notify you of any missing petitions and papers and allow you to present them, but it must be done promptly. Seeking legal representation in the beginning stages of bankruptcy in Florida will help you prepare a strategy to accomplish all the legal requirements on time.

Failure to Attend the Meeting of Creditors

Once you have filed for bankruptcy, you will be sent a notice from the court of the date, time, and location of the Meeting of Creditors. You must attend the meeting along with any co-filers in your case. 

Understanding Personal Bankruptcy

All bankruptcies follow a specific course of procedures, but every claim is different depending on personal circumstances. The road to this point can be flooded by harassing calls from debt collectors using aggressive language and other forms of harassment. You may see no way out. 

Let the experienced team of Sharmin & Sharmin P.A. guide you in the collection of documentation and proper bankruptcy procedures so that you can begin to regain financial stability while securing the assistance you need.