Can the court deny your bankruptcy petition?

Victoria Maydanik California bankruptcy, Uncategorized Leave a Comment

The short answer is “yes.”

Many bankruptcy cases are closed without discharge. Here are the common reasons:

– not all of required paperwork was submitted to the court or the trustee

– paperwork was submitted, but was not prepared correctly

– paperwork was submitted untimely, past the applicable deadlines

– debtor did not complete one or both of required credit counseling classes

– debtor did not come to the mandatory meeting with the trustee, or did not show current identification and valid proof of Social Security number to the trustee

– debtor did not respond to trustee’s requests for additional information, or did not cooperate with the trustee in some other way (for example, refused to turn over some valuable asset that the creditors were entitled to have)

– debtor did not comply with the terms of their bankruptcy case (for example, he or she had a Chapter 13 payment plan, and did not send in required payments, or sent them in untimely)

– debtor submitted incomplete, misleading or fraudulent information (for example, misrepresented income, misrepresented marital status, failed to disclose ownership of real estate in the States or in another country, failed to list all of their bank accounts, failed to disclose or properly describe transfers of their property that happened within a couple of years before the bankruptcy case, failed to disclose settlement or inheritance they were expecting)

That said, if you hire a diligent and knowledgeable attorney who understands the court’s requirements and guides you through the case, disclose all required information fully, and cooperate with the court and the trustee to the extent your cooperation is necessary, bankruptcy discharge is not difficult to obtain.  Your case can be (blissfully) uneventful, proceed smoothly, and wrap up successfully.

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