Why do bankruptcy requests get denied?

Deciding to file for Chapter 7 or Chapter 13 bankruptcy often comes after a cold, hard reckoning of facts. You acknowledge that you may have bitten off more than you could chew, and you are now in a financially precarious situation with no better alternative.

Still, just because you file for bankruptcy does not mean it will be automatically granted to you. In fact, there is a possibility for your creditors to challenge the bankruptcy request, perhaps even filing a complaint in an attempt to have your request denied. In such instances, you might have to give up assets to offset debts and still walk away without the bankruptcy ruling in your favor.

Honesty is the best policy when it comes to bankruptcy

Bankruptcy proceedings come with serious implications. As you complete the required paperwork, it is important to remain as honest and transparent as possible. Being as clear and direct as possible can reduce the risk of receiving a creditor complaint or having your bankruptcy request denied by the courts.

Some common reasons why a creditor might file a complaint is to argue that:

  • You hid assets from the court
  • You tampered with or destroyed financial records
  • You made knowingly false statements about your finances, assets or debts
  • You received a bankruptcy discharge recently enough to disqualify your request
  • You violated a court order

If such a complaint is registered against you, you have limited time to respond. Even with your response, you may need a court hearing to sort things out with the judge. Discussing your case with someone familiar with bankruptcy law can provide you with the resources and support necessary to complete the process.

Attorney Brad Hawley

Attorney Brad HawleyAttorney Brad Hawley possesses years of practical experience focused on bankruptcy, civil and criminal defense. He has prosecuted and defended clients in state court, and is a former enlisted member of the United States Army. Brad is driven by his desire to help people that have been hurt by the legal system, and is dedicated to fixing injustices he sees around him. [ Attorney Bio ]

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