People often file for bankruptcy when they are facing financial hardships. And while most of us want to get back on our feet, the process can be tough. If your bankruptcy case was denied, it could mean you have to start from square one with no cash flow available for your bills. This happens more than you’d like to admit, and there can be many reasons for it. However, a Montgomery bankruptcy lawyer can explain the process and the documents you need to fill out, and help you come up with a plan to increase your chances of success.
Here are five of the most common reasons your bankruptcy case could be denied.
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You failed to attend credit counseling
One of the first things you’ll have to do is go through credit counseling. It’s free, and it can help you understand your credit and make you more financially secure. If you fail to attend credit counseling for whatever reason, the court may deny your case.
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Your income, expenses, and debt would allow for a Chapter 13 filing
Before you can file for bankruptcy, you have to put together your budget. You’ll have to take into consideration your income, expenses, and debt. If all of these categories are within the Chapter 13 limits, you may not be able to file for Chapter 7 bankruptcy.
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You attempted to defraud creditors or the bankruptcy court
It’s illegal to attempt to defraud anyone. If you do this, you could face additional charges that will make it more difficult for your case to be approved. Even if you don’t have any intent to defraud anyone, if your case is denied due to fraud, then you may not be able to re-file in the future.
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A previous debt was discharged within the past eight years under Chapter 7
If you filed for Chapter 7 bankruptcy on a previous debt and the debt was discharged within the past 8 years, then it may affect your case. This can be a reason for the court to deny your case.
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A previous debt was discharged within the past six years under Chapter 13
If you filed for Chapter 13 bankruptcy and the debt was discharged within the past six years, it could cause your case to be denied. This is a major reason why a bankruptcy lawyer is such a great asset to your case.
