Can My Bankruptcy Be Rejected or Turn Down?

August 24, 2015

Indianapolis Bankruptcy Attorney Explains “Bankruptcy Rejection”

Can My Bankruptcy Be Rejected or Turn Down? – Practicing Bankruptcy Law near Indianapolis, Indiana, we are many times asked whether a bankruptcy can be rejected or turned down. Can your case be rejected or turn down? The answer is “No.” If you follow the rules of Chapter 7, you generally cannot be “rejected” or “turned down” for bankruptcy relief. Therefore, the question becomes how do you not follow the rules of bankruptcy so that your Chapter 7 case could be rejected.

Rejection in Chapter 7 Due To Too Much Income

If your attorney’s interpretation of the Chapter 7 Means Test does not match up to the United States Trustee’s interpretation, you may have your case rejected in Chapter 7. Therefore, if you are “very close” or “right on the line” on whether you can file Chapter 7 bankruptcy, the United States Trustee may file a motion to dismiss the case or alternatively to convert to Chapter 13. You would be “forced out” of Chapter 7 into Chapter 13 or your case would be dismissed. Although this scenario is not very common, it can happen on very close cases.

Rejection Due To Not Following The Rules of the Trustee and Bankruptcy Court

If you ask for Chapter 7 relief, you have to follow the rules after you file your case. If the Trustee (the overseer of your case) holds that an asset or information needs to be turned over, then you must comply quickly. If you refuse to turn over an asset or spent up the asset and cannot repay it, the Trustee will eventually revoke your discharge and your original Chapter 7 case will be rejected.  Do not worry: if you follow the rules and request of the Bankruptcy Trustee, this should never happen.

Rejection For Fraud

The final cause for rejection of your Chapter 7 case is for fraud. Although findings of fraud are rare in Chapter 7 bankruptcy, your bankruptcy case can be rejected and your discharge can be revoked if you are caught lying to the court or trying to abuse the system. With fraud, you can also face criminal charges. Once again, this is very rare and you do not need to worry about this more than likely if you are a genuine, regular bankruptcy filer.

Just Follow the Rules and You Will Not Be Turned Down or Rejected for Bankruptcy

If you follow the rules, you have nothing to worry about with bankruptcy. You are entitled to the relief and it will not be held back from you. Do not be afraid of being rejected for Chapter 7 relief. Call our Indiana Bankruptcy office and get relief today.

– Indianapolis Bankruptcy Attorney John Bymaster

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