When you’ve made the difficult decision to file for bankruptcy, you may feel like a weight has been lifted off your shoulders because you know relief is coming. However, when you discover your case is denied, the crushing feeling of debt can settle right back on your shoulders. As such, understanding why bankruptcy is denied can help you avoid making these errors. Additionally, you’ll learn how a Memphis, TN consumer bankruptcy lawyer can help you through these challenging times by exploring your legal options with you.
Why Might Bankruptcy Be Denied?
One of the most common reasons a bankruptcy petition is denied is due to filing errors. When you pursue this process, you must ensure all paperwork is completed correctly and submitted on time. Forgetting to submit tax returns, incorrectly listing assets and debts on the petition, or missing deadlines can all result in your case being dismissed.
Another reason you may be denied is that you did not attend the mandatory credit counseling sessions that all filers are required to complete. You must attend an accredited counseling course to explore other debt-relief options before filing. Additionally, you must submit your certification of completion when filing to show that you took the necessary steps. If you do not take the required courses, your case can be denied.
You may also be denied if you do not pass the means test for a Chapter 7 filing. Essentially, to qualify for the shorter, more direct process of Chapter 7 bankruptcy, you must pass a means test. Filers must be below the median income for others in Tennessee to qualify. If you do not pass the means test, your case can be denied, as you would be required to file for Chapter 13.
Other reasons you may be denied include committing bankruptcy fraud, having a previous filing, or failing to pay the court fees associated with this process.
What Are My Options if This Happens to Me?
Generally, the most important thing you can do before you file for bankruptcy is to connect with an experienced attorney who can help guide you through this process to avoid making errors that can result in your case being dismissed. Your attorney can not only help you file the correct paperwork but also help walk you through this process to fight for the best possible outcome during these matters.
Bankruptcy is a complex legal process you shouldn’t have to go through on your own. At the Arnold Law Firm, we’ve helped countless people around Tennessee through this process to achieve a financial refresh. If you need help, we’re here. Connect with our dedicated firm today to learn how we can assist you through these matters.
