Asking yourself, “Should I file for bankruptcy?” While it may be the path you need to take, it’s important to fully consider the repercussions and make sure you are prepared to do it fully so your petition isn’t denied. If you decide to move forward with filing, you can consider hiring a bankruptcy attorney to guide you through the process and help make sure there’s no issues that could cause a denial.
With Chapter 7 bankruptcy and Chapter 13 bankruptcy, there are a few things you need to know before you file that could affect which type you file for and if you’re likely to be approved or denied.
In order to be eligible for Chapter 7 bankruptcy, you have to pass the means test. This test determines whether or not you could afford to pay off your debts. If you can afford to pay them off, you are ineligible for Chapter 7 and should consider filing for Chapter 13 bankruptcy. If you pass the means test, you can continue with filing for Chapter 7.
To ensure your filing is not denied, it’s important to be fully transparent with the court and in your paperwork. Do not move around assets, pay off preferred debt (ex: money owed to a family member or friend), or continue to accrue extra debt by running up a credit card or making a large purchase. Do make sure your paperwork is complete and submitted by the proper deadline or earlier.
If you do not pass the means test, you may still be eligible to file for bankruptcy under Chapter 13. This form of bankruptcy schedules out payments to be made over a period of 3-5 years to pay off debt. Under Chapter 13 bankruptcy it is also inadvisable to make large purchases right before filing or move assets around. Being upfront and honest in your filings attending all court appearances is vital to ensuring your filing is approved.
For the most part, bankruptcy filings are rarely denied but cases can be dismissed if there is missing information or a misrepresentation of assets and debt. Checking to make sure your forms are complete and accurate, receiving the necessary financial counseling, and contacting a bankruptcy attorney are all ways to avoid the headache of a denial or dismissal.
To make it easier on yourself, you can hire a bankruptcy attorney to simplify the process and provide a reliable resource to answer questions as they arise.
Make sure you’re making the right moves when you file for bankruptcy and request a consultation or call the Law Office of Corey Beck at (702) 678-1999.
