Groce & DeArmon Explains Common Reasons for Bankruptcy Dismissal
Some people forget that bankruptcy is not as simple as filling out a slip of paper and handing it over to the court. It is, in fact, possible for your bankruptcy filing to be declined or “dismissed.” There are a number of reasons that bankruptcy cases can be dismissed, and many of them are easily avoidable when you give the proper attention to your paperwork or seek the help of a bankruptcy lawyer from Groce & DeArmon.
Other issues can arise from dismissal, however, if the court suspects you of foul play or fraudulent behavior. In this case, you are considered “dismissed with prejudice,” meaning you will have to take some action to protect yourself or prove that you were not fraudulent with your bankruptcy filing.
But whether you’ve filed already and been dismissed, or you are about to file and want to do it properly, you will want the help of a bankruptcy attorney. With over 13 years of experience helping the southwest Missouri area through bankruptcy proceedings, Groce & DeArmon is prepared to help you as well. Read on as we discuss some common reasons for dismissal and what you can do about it.
You Fail the Means Test
As we have discussed in previous blogs, the means test is something all persons filing for Chapter 7 bankruptcy must take. This test assesses your income in order to determine your eligibility for clearing your debt. If you do not meet its income requirement, then your bankruptcy filing will be dismissed. For more information on how the means test works, you can check out our blogs or set up a free consultation with Groce & DeArmon to learn more.
You Fail to Attend Your Meeting of Creditors
The meeting of creditors is a hearing that all people filing for bankruptcy must attend. At this hearing, where you will be under oath, your creditors and trustee are allowed to ask you questions about your finances and your bankruptcy paperwork. If you miss this hearing, it is likely that your file for bankruptcy will be dismissed.
You Fail to Complete Your Paperwork
The required paperwork and forms for filing bankruptcy can be quite detailed, and some people will fail to complete them. They may not be comfortable sharing all of their financial information, they may mistakenly leave the paperwork blank, or they may simply neglect to fill it out. In these cases, improperly filled out paperwork will prevent the court from reasonably considering your situation. They will likely dismiss your bankruptcy claim.
Let Groce & DeArmon Help You File or Re-File
Assuming that you have been dismissed “without prejudice,” then you are able to re-file for bankruptcy. This will cause some issues with the automatic stay that is issued when you file, but a bankruptcy lawyer from Groce & DeArmon can help you parse out those details.
If you are thinking of filing for bankruptcy, or you’re having to re-file after a dismissal, then give us a call today. To set up your free consultation, call 1-800-640-3706.