Bankruptcy is an option for those hopelessly in debt. It’s a chance to get a fresh start and begin again with your debts cleared. However, just because the bankruptcy court can discharge your debts, it doesn’t mean that it will. You have to follow the rules of procedure, be transparent, and ensure that you are being completely honest in your documents. This is also a good argument for why you do not want to file for bankruptcy without a lawyer. An honest mistake can look like bankruptcy fraud to the bankruptcy trustee and court. So, it is important to have an attorney manage the process, and it is important to be completely honest with your attorney. In this article, the Danville, IN, bankruptcy attorney, Chris Arrington, will discuss situations in which the bankruptcy court might deny your Chapter 7 bankruptcy discharge.

Why do bankruptcy discharges get denied?

There are several reasons why a bankruptcy discharge may be denied. These include:

• Violation of a court order – It’s important to follow the instructions of the court absolutely when filing for bankruptcy. Failure to follow a court order can result in your bankruptcy discharge being denied. 
• Failure to include all assets in the bankruptcy file – When filing for bankruptcy, it is important to ensure that you include all of your assets (and your debts) in your bankruptcy filing. That means if you owe Grandma $25, you have to include it in your bankruptcy paperwork. If you do not, the court may assume you are hiding assets or otherwise attempting to defraud the bankruptcy court. 
• False statements – You do not want to commit bankruptcy fraud, which is exactly what will happen if you make false statements in your bankruptcy filing. Some folks try to hide assets from the bankruptcy trustee so they are not subject to liquidation. In other cases, they transfer assets to family or friends to remove the asset from their estate during the bankruptcy. Both of these actions could be considered fraud on the court.
• You failed to disclose another bankruptcy case – You can only file for so many bankruptcies in a period of time. If you fail to disclose a previous bankruptcy case, it may be perceived as fraud. You want to avoid this.
• Received a recent discharge – If you received a Chapter 7 bankruptcy discharge within the past eight years or a Chapter 13 discharge within the past six years, you are not eligible to file for bankruptcy again until that time period elapses. 
• Failed to complete the required credit counseling or financial management course – As part of the bankruptcy process, a debtor has to complete a credit counseling course that hopefully prevents a future bankruptcy. If you fail to take this course, the court can deny your bankruptcy discharge. 

Talk to a Danville, IN, Bankruptcy Lawyer Today

Chris Arrington represents the interests of those who are struggling with mounting debt that they cannot pay their way out of. Call our office today to schedule an appointment, and we can begin discussing your options immediately.