What NOT to do When Filing for Chapter 7 Bankruptcy in Monmouth County
When you file Chapter 7 bankruptcy in New Jersey, there is no guarantee that your case will end with a discharge. A discharge is when the court releases you from any personal liability for specific kinds of debt. Getting a discharge through Chapter 7 bankruptcy is a great way to wipe the slate clean on your finances to build a stronger foundation for your future. However, many folks who try to file for Chapter 7 bankruptcy without the advice of an experienced attorney end up seeing their case denied. When you work with Veitengruber Law, we can help you understand bankruptcy law and prepare a successful filing to avoid denial in your bankruptcy.
Why do discharges get denied?
The bankruptcy court can deny a Chapter 7 discharge for several reasons. In most cases, the court has determined that fraudulent activity is associated with your case. Hiding assets, lying about your financial situation, or generally misleading the court can result in the denial of your discharge. This means that you will remain liable for your debts.
Here are the circumstances under which the court can deny your discharge:
- You are not an individual (businesses cannot receive Chapter 7 discharge)
- You have received Chapter 7 discharge within the previous eight years
- You have hidden or destroyed records of your finances
- You have lied to the court or attempted to defraud the court or your creditors
- You cannot explain the loss of assets
- You are disorderly in the court
- You have not completed
Who can request a denial of discharge?
Your bankruptcy trustee—or the court-appointed person who oversees your case—or any of your creditors can request the denial. Creditors or the trustee can bring a lawsuit against you. They must have evidence to support their lawsuit. In return, you will have the chance to respond to any allegations and even take the case to trial. If these claims are found to be false, your bankruptcy will proceed as usual.
What happens after my Chapter 7 discharge is denied?
The denial of your Chapter 7 discharge will not end your case. The trustee appointed to your case will continue liquidating your non-exempt assets to repay creditors. You can still potentially lose any unexempt assets. You will still be liable for any debts you still owe once your case is resolved. Even if you file Chapter 7 again in the future, the debts included in this bankruptcy claim will not be wiped out through discharge.
How can I prevent denial of discharge?
The bankruptcy process can be overwhelming, stressful, and confusing at times. Even if you do not intend to defraud the court, you can accidentally do so by leaving out assets or filling out paperwork incorrectly. An experienced bankruptcy attorney like Veitengruber Law can help you stay organized and guide you through the process. We will help you present a meticulous record of your finances and ensure you follow court rules and procedures. With our assistance, you can navigate the bankruptcy process with confidence.