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Was Chapter 7 bankruptcy rejected for you? If so, you might be curious as to what comes next. You should first comprehend the potential grounds for denying your Chapter 7 bankruptcy.
So, what will result in a Chapter 7 being rejected?
You can be found guilty of using fraud in your case if it is discovered that you concealed assets, transferred assets before filing, or provided inaccurate fair market valuations for your assets. Your bankruptcy petition will be rejected as a result of this. It is crucial that you discuss your financial status in depth with your lawyer. It also refers to your resources and earnings. Fraud is a severe issue, yet it is preventable.
What Sort of Fraud Is Allowable Prior to Bankruptcy?
The following conditions might constitute pre-bankruptcy fraud. Any of these circumstances might lead to a creditor requesting the court to reject your discharge of a specific debt. As a result, even after your lawsuit is over, you will still owe the money.
- submitting false information about one’s income or assets in order to receive a loan or credit
- forging or misrepresenting financial documents
- using credit without planning on paying it back.
- deliberately writing a bad check
- Before filing, make a few luxury purchases.
- taking out substantial cash loans prior to filing
- using unethical business methods
- Remember that you can avoid and address all of the aforementioned issues with your lawyer. Any fraud accusation will be looked into carefully by your bankruptcy trustee.
What Type of Fraud Is Possible During Bankruptcy?
By collaborating with your lawyer, you can prevent the following occurrences throughout your bankruptcy. Examples like the ones below will be viewed as a concern and result in a fraud accusation:
- Leaving out a property to avoid its sale during bankruptcy
- Keeping a property transfer secret (Click here for additional bankruptcy mistakes to avoid)
- Present fictitious information to your trustee or the court.
- document withholding or destruction
- Hiding assets from the court or hiring someone to assist in hiding assets
- Making deliberate misleading assertions in documentation or hearings
- Bankruptcy fraud can be prevented.
- Being upfront and honest with the court and your attorney can help you stay out of trouble.
You may get in connection with the acclaimed Recovery Law Group if you’re seeking for legal representation and advice for filing for bankruptcy. Visit https://recoverylawgroup.com/bankruptcy/ to schedule an appointment.
Usually, bankruptcy fraud is done on purpose. You probably won’t be found guilty of fraud if you omit to report a cost or asset. If you discover something you neglected to provide, your lawyer can assist you in changing your case. Contrarily, deliberately concealing an asset, submitting a fake form, or making a dishonest statement are all quite different.
Other Justifications for Dismissing a Chapter 7
- Your credit counselling classes are not finished.
- The means test does not determine whether you are eligible for Chapter 7 bankruptcy.
- You have eight years from the last Chapter 7 filing.
- Within the last six years, you previously filed a Chapter 13 lawsuit.
- You disregard the judge’s instructions in your case.
The easiest approach to determine if you qualify for a discharge in another case is to speak with your lawyer. If you weren’t given a discharge in your case, there are time constraints.
Was your case dropped as a result of your non-appearance or disregard for a court order? You must then wait 180 days before filing again.
Has your previous case been rejected? If so, it’s possible that you won’t be able to get a discharge for the debts connected to that case. This is why it’s crucial to consult your lawyer.