You sit back and think to yourself, ok if I summon the courage to do this, can my Chapter 7 Bankruptcy be denied? The answer is yes, but it is very rare. The vast majority of Chapter 7 Bankruptcies go through and debtors receive a discharge- i.e. their debts get wiped out, tax free, forever! Occasionally, Chapter 7 Bankruptcy filings can go awry.
First, Chapter 7 Bankruptcies get denied sometimes if debtor’s income exceeds the median family income for the state you are in, and after going through “means testing” you have surplus income sufficient to fund a Chapter 13 plan and repay some of your debt.
If you hire a competent Chapter 7 Bankruptcy lawyer, and never a paralegal or out of state company, you should not have a problem with this. Any competent bankruptcy lawyer should be able to tell you if you are qualified to file a Chapter 7 Bankruptcy and survive the “means testing”. If your lawyer is not competent to do let you know this, hire someone else.
Second, and this is even more rare than the first, Chapter 7 Bankruptcies can be denied for reasons outlined in Section 727 of the Bankruptcy Code. These reasons usually relate to debtor being deceptive about their assets and transactions that occurred before filing. For example, if debtor is hiding assets from the estate and Chapter 7 trustee, debtor risks having his/her discharge denied or revoked if granted. These are events that are the exception and not the rule. The saying goes, honest debtors get discharges.
When the time is right, or when you are ready, reach out to Minnesota’s nicest bankruptcy law firm at www.kainscott.com. You will be so happy you did!