Can the Courts Reject a Bankruptcy Filing?
If you are struggling financially and see no end in sight, you may have thought about contacting a chapter 7 lawyer Peoria IL residents depend on. At Smith & Weer, P.C., we have almost four decades of experience helping clients with debt relief and chapter 7 Peoria IL residents choose for consumer protection. We are happy to meet and discuss your situation and whether or not filing for chapter 7 in Peoria IL is right for you.
When it comes to filing for chapter 7 Peoria IL families may find that it helps them to alleviate their debt. Coming to terms with such a difficult decision can be tough; especially when considering the long-term impact it can have on your credit report. But what happens when the relief of the decision to file for bankruptcy turns to disappointment? What if the court rejects your bankruptcy filing? When it comes to filing for chapter 7 Peoria IL community members sometimes discover that it’s not necessarily a simple process to handle on their own.
Why Do I Need a Chapter 7 Lawyer Peoria IL Clients Recommend?
Although some people think they can file for chapter 7 on their own, many of those people soon find out that it is not only a complicated process, but even one mistake can lead to a judge dismissing a bankruptcy filing. There are complex legal issues that must be addressed in bankruptcy and retaining the services of a seasoned chapter 7 lawyer in Peoria IL can ensure that your bankruptcy petition not only meets the standard required by the U.S. Bankruptcy Code, but that you are also listing all of the dischargeable debts you are entitled to include.
Some of the ways a chapter 7 lawyer Peoria IL can help you include:
- Determining if you qualify for bankruptcy;
- Evaluating your case and determining if bankruptcy is the right choice for you and which chapter will provide you with the most benefit;
- Explain the bankruptcy process to you;
- Determine which of your debts can and cannot be discharged. There are some debts, for example child support arrearages, that bankruptcy court does not allow you to discharge;
- Determine what property you will be allowed to keep after your discharge. This can include your home, vehicles, or other property;
- Determine whether or not there are creditors you should continue to pay while your bankruptcy is pending;
- Determine what, if any, tax consequences you will have; and
- Fill out all the documents and forms required in a bankruptcy filing.
Many people who file their own bankruptcies without an attorney run into problems almost from the beginning. Some of the more common problems include:
- They file the wrong bankruptcy chapter. There are several different types of bankruptcy you can file but each one has specific qualifying factors;
- When filing bankruptcy documents with the court, the fail to file all the required documentation or some of it is filled out incorrectly;
- Filing incorrect property exemptions;
- Failing to take the credit counseling and financial management classes the court requires; and
- Not understanding how to deal with creditors challenging a discharge of debt.
As you can see just in this brief overview, bankruptcy can be complex. By hiring an attorney who will handle the process for you, it will likely be less stressful than if you tried to handle the filing yourself. Having an attorney ensures the process will go a lot smoother and you will be on the road back to financial recovery a lot quicker.
Reasons to Deny Bankruptcy
It can be disheartening to be denied of bankruptcy. There are several reasons why this may be the case. When the courts deny a bankruptcy, you will be required to pay all debts that you owe. It may still be possible for the bankruptcy trustee assigned to your case by the courts to liquidate all of your assets in order to pay off any outstanding debts. Bankruptcy claims may be denied for a number of reasons:
- If you are not honest with creditors and your bankruptcy trustee, your filing could be denied. For example, if you were to lie about your income.
- You risk denial if you hide information or do not provide the bankruptcy trustee, or the courts with the correct documentation.
- Transferring or hiding assets by putting them in the names of friends or family members could result in a bankruptcy denial. In the event that you did this without realizing it was against the requirements, speaking with your attorney will be beneficial.
- Committing bankruptcy fraud could put you at risk of grave repercussions. This includes destruction of assets, giving them away or concealing them from creditors.
- If you do not take the required financial course as required by the court you could be at risk of your bankruptcy case being denied. Taking the course is a simple way to move forward in the bankruptcy process. It is far costlier to have to go through the entire bankruptcy process over again than taking the time to complete the course.
The bankruptcy trustee is responsible for going through your assets and debts and determining how debt will be settled or forgiven. In most cases, the court appoints the trustee but, in some rare circumstances, creditors can choose the trustee. The trustee manages much of the bankruptcy process. They will investigate all documentation you have submitted and verify that the information is accurate; from there they will work to sell any assets you may have and go through all of your debts.
Consult with a bankruptcy attorney if you are considering filing for bankruptcy. They will be able to guide you through the process and provide you with the information needed to avoid your bankruptcy claim being denied by the courts. When someone files for chapter 7 Peoria IL individuals and families do not want to have to do it more than once.
Contact a Chapter 7 Lawyer Peoria IL Trusts Today
If you would like to meet with an experienced Peoria chapter 7 lawyer and find out if bankruptcy can help your situation, contact the legal team at Smith & Weer, P.C. today. In Peoria IL chapter 7 is not your only option. We can evaluate whether you qualify for chapter 7 or if chapter 13 would be a better alternative.
Call a chapter 7 lawyer Peoria IL provides at 309-694-6700 for your free evaluation. A bankruptcy lawyer from Smith & Weer, P.C. can help you file a chapter 7 Peoria IL courts are more likely to approve.