At The Law Offices of Paul Y. Lee we find that it’s common to work with clients who have no idea that it’s possible their bankruptcy can be denied. In most cases, people assume that the bankruptcy is an option as long as they meet each of the bankruptcy eligibility requirements. Unfortunately, this is not true for everyone. There are a few different reasons that you could be denied. Here are there of them.
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You don’t provide the correct documents
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You don’t follow the very specific timelines
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The bankruptcy court finds you guilty of fraud
Your bankruptcy case revolves around your financial situation. As a result, there are a host of documents you’re required to provide. This may include your pay stubs, tax returns, bank statements, mortgage information, and more. Most of this paperwork will be requested by your bankruptcy attorney and The Law Offices of Paul Y. Lee can help you get access to documents if you’re not sure how to find them.
However, in some cases the courts may ask for this information directly from you. If they do, and you don’t provide the documents, you provide inaccurate information, or you don’t provide the level of documentation they request, then the court could deny your case. This is just one reason that it’s crucial you work with a bankruptcy attorney.
No matter which type of bankruptcy you file, whether it’s Chapter 7 or Chapter 13, you’re not going to be the only person filing that day. In fact, California courts get thousands of bankruptcy petitions and if they allowed each of those debtors to follow their own deadlines, then there could be chaos within the system.
That’s why the state has rules about when things must be filed and why they’re general inflexible when it comes to extending deadlines – because it could put other debtors case’s back months. Courts in both the state and federal realm had repeatedly found that if a debtor misses a bankruptcy case, it can be dismissed.
There will come a time when you’re required to answer questions in court to your bankruptcy trustee. These are simple questions about your financial situation and your bankruptcy case. The purpose of these questions is to ensure that fraud is not an issue. If it’s found that you did commit fraud, then you could have your case dismissed and you could never be able to file bankruptcy on those debts again.
In bankruptcy court, fraud is considered knowingly leaving off a creditor or debt, not disclosing money you have in addition accounts to your attorney, or not disclosing that you’ll get an inheritance or other financial windfall after the bankruptcy clears.
Bankruptcy denials are rare but they do happen
Remember that the above examples are just three reasons your bankruptcy could be denied. Bankruptcy may be the best option for your situation but it can also be complicated. The good news is that you have The Law Offices of Paul Y. Lee to work on your behalf. Call us today at 951-755-1000 to get started with your free consultation.
