Bankruptcy is a legal process that has been described as very complicated. However, filing bankruptcy successfully can provide individuals a great way to start over financially. You have the opportunity to leave your past financial mistakes behind, and turn your life around. Unfortunately, the court does not accept many individual bankruptcy cases. There are many different reasons why the courts may reject your bankruptcy filing.
Debtors should become familiar with the specific rules associated with the bankruptcy they want to file so there is less of a chance of the courts rejecting their case. You should be aware of the most common reasons why filing bankruptcy the wrong way can cause the courts to reject your case.
You Failed the “Means” Test for Filing Bankruptcy
If you want to have your unsecured debts discharged, you will have to pass the “means” test that is required by the bankruptcy court. The test allows the court to see how much disposable income you have after you pay your monthly expenses. If the court determines you have more disposable income than the acceptable range, you will not be able to file Chapter 7.
You should allow an experienced bankruptcy attorney to look at your case before going to court. During a free consultation, the lawyer will let you know whether the courts will reject your case because you will fail the means test. The attorney will also let you know about other options including filing for Chapter 13 instead.
You Do Not Have Sufficient Tax Documents
The court will want to view your tax information before it offers you bankruptcy protection. The documents are necessary so the court can see that you are able to pay your debts. If you do not provide this documentation, the court will probably dismiss your case. This is a new rule that resulted from the bankruptcy reform of 2005.
These are just two of the mistakes that you should try to avoid when filing bankruptcy. Be honest when providing information and follow all instructions given by the court and you should have a successful bankruptcy filing.
Douglas Jacobson Law Firm is one of the best bankruptcy law firms in North Georgia. The Douglas Jacobson Law Firm is committed to helping provide bankruptcy clients with a new financial start. Contact us for a free consultation.