Top Five Reasons Your Bankruptcy Filing May Be Rejected
When you file for bankruptcy, you need quick relief. That is why it is important not to make any errors in your application that might delay, or worse, reject, your filing. Ensure smooth sailing for your bankruptcy process by working with an experienced bankruptcy attorney to avoid these common filing mistakes and omissions:
- Not passing the means test. To qualify for Chapter 7 liquidation bankruptcy, you must pass the Georgia means test to determine the amount of your disposable income. If your income is too high, consider filing under Chapter 13.
- Failing to provide tax documents. To prove that you do not have enough assets to pay off your creditors, you are required to provide copies of your last two years’ tax statements for Chapter 7. Since revisions to the bankruptcy code in 2005, you must file tax returns for the past four years for Chapter 13.
- Providing an unworkable repayment plan. In Chapter 13 reorganization bankruptcy, you present a plan for repaying your debt. Your case can be rejected if the court decides your plan is unattainable and you do not have the income to meet your obligations.
- Your bankruptcy request is challenged. Chapter 7 bankruptcy ends in the discharge of your debts. However, your bankruptcy process can be blocked if a creditor or a bankruptcy trustee claims you are not eligible for a discharge. Charges include misrepresenting your debts or assets, hiding assets, misreporting your tax statements or failing to complete credit counseling.
- DIY bankruptcy. While it may seem like filing bankruptcy only requires filling out a few forms, you can discharge more debts and keep more assets with the assistance of a knowledgeable and experienced bankruptcy attorney. Your attorney guides you through filing the right bankruptcy chapter given your situation, choosing the most advantageous property exemptions, submitting the correct documents and meeting all deadlines.
The Atlanta, GA bankruptcy attorneys at DebtStoppers help people facing severe financial problems find true debt relief. Call their office today at 404-796-7161 to schedule a free initial appointment.