In a Chapter 7 bankruptcy case, there are two primary reasons a court may determine that you have committed fraud.
First, the court may accuse you of fraud if you have attempted to transfer or destroy any of your assets up to a year before filing or any time after that. This includes actions like transferring a vehicle title to a relative with the intention of keeping that asset out of your bankruptcy case.
The second action that may lead the court to accuse you of fraud concerns misinformation. Fraudulent actions include lying about your financial information or lying in attempts to conceal information. Sometimes, a case will be dismissed on account of fraud because the debtor simply forgot to list an asset when filing, so it is imperative that you are extremely thorough and honest about your financial situation.
Unfortunately, even unintentional fraudulent actions can result in dismissal, so it is important to consult with your bankruptcy attorney to ensure you have completed all paperwork thoroughly and honestly. Furthermore, be sure to clarify what actions you can and cannot take regarding your assets in a bankruptcy case.
Refusal to Comply
In a bankruptcy case, compliance includes a variety of actions one must take or paperwork they must provide for their case. Here are some of the most common compliance issues that lead to dismissal of a bankruptcy case.
- Not attending required credit counseling
- Failing to file all of the required bankruptcy forms
- Failing to pay the court filing fee
- Not providing all requested documents to the court
- Failing to appear at the meeting of creditors
It’s easy to overlook many of these factors accidentally. To ensure you have completed all of the necessary steps and followed protocol, we recommend partnering with an experienced and meticulous bankruptcy attorney who can assist you in the filing process.
Lack of Eligibility
The primary issue that leads to the court determination of ineligibility is the Bankruptcy Means Test. The test looks at both your income and your household expenses to determine whether or not there is enough money left over to pay creditors. In some cases, debtors who do not qualify for Chapter 7 filing based on this test end up filing for Chapter 13 bankruptcy instead. However, every case is different, so it is prudent to check with your attorney before deciding to alter your filing.
Collins & Arnove protects their clients to make sure they are successful in their bankruptcy cases. To learn more about bankruptcy laws, or to schedule a free consultation with us, visit http://www.ntb.wpmudev.host or call 972-516-4255.
Collins & Arnove | Chapter 7 Bankruptcy Garland TX | 972-516-4255