3 Issues The Creditors Might Raise In Court As Grounds For Getting Your Bankruptcy Application Disapproved

Posted on: 18 May 2022

The law provides guidelines that every applicant filing for bankruptcy should comply with. Failure to meet any of them may lead to a denial of your application, exposing you to the danger of losing your assets to your creditors. Judges generally throw out bankruptcy cases if they realize that an applicant provided false information or didn't follow court rules and regulations. Therefore, you may want to know the errors that could make you fail to qualify for bankruptcy. Working with a professional lawyer can help you avoid the following issues that the creditor could use to convince the court to disapprove your application.

Providing Incorrect or False Information

You're supposed to provide factual financial and personal information to enable the court to determine whether you're a candidate for bankruptcy. Failing to do this is a serious offense that might get you into trouble with the authorities. The court views providing false or incorrect information as an attempt to be deceptive that you're not capable of repaying your debts. For this reason, transferring any money from your bank accounts or transferring assets to other people's names will not go down well with the court. Inform your lawyer clearly of any transfers before filing to enable them to know how to help facilitate the success of your application.

Going Against Court Orders

The court expects you to follow all court orders throughout the application process. Failure to do this has serious consequences, including the denial of your application. You do not wish to lose an opportunity to get debt relief by failing to comply with a simple court order. Therefore, you might consider working with an experienced bankruptcy lawyer because they will contact you regularly, reminding you of the specific measures you need to take by specific dates to avoid getting into trouble with the authorities.

Failure to Take the Mandatory Courses 

The law requires you to complete a financial course before applying for bankruptcy. You're also supposed to take a management course during your case. There's no benefit to applying for bankruptcy without taking the courses because you may not succeed. Your legal advisor can even advise you on the proper instructional course to take, ensuring that you meet all the requirements. They will then wait until you finish studying before guiding you through the application.

The issues above can cause you to fail to qualify for bankruptcy. As a result, you may be at risk of facing legal action if creditors are not willing to give you more time to clear your debts. However, you can avoid errors by working with a reputable bankruptcy lawyer. They will guide you through the application to ensure that you don't engage in any acts that may make the court deny you discharge.

For more information, contact a local bankruptcy attorney