' How Often are Bankruptcies Denied? | FL Law | Robert M. Geller
CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

How Often are Bankruptcies Denied?

how often are bankruptcies deniedBankruptcy offers a lifeline for people drowning in debt. It provides a chance to start anew and regain financial stability. However, the process of filing for bankruptcy can be complex and fraught with challenges. One of the most common concerns is having your bankruptcy petition denied.

How often does this happen and how can you prevent it from happening to you?

Understanding Bankruptcy Denials

According to recent data from the Administrative Office of the U.S. Courts, approximately 0.4% of Chapter 7 and 13 bankruptcy cases are dismissed due to denial.

Bankruptcy petitions may be denied for various reasons, ranging from procedural errors to legal challenges from creditors. While the majority of bankruptcy petitions are approved, a significant number are denied each year.

Reasons for Bankruptcy Denials

Several factors can contribute to the denial of a bankruptcy petition, including:

  • Failure to meet eligibility requirements: To qualify for bankruptcy relief, individuals must meet certain eligibility requirements outlined in the bankruptcy code. Common eligibility criteria include income limits for Chapter 7 bankruptcy and the ability to propose a feasible repayment plan for Chapter 13 bankruptcy. Failure to meet these requirements can result in petition denial.
  • Incomplete or inaccurate filings: Bankruptcy filings must be accurate, complete, and submitted on time. Any errors or omissions in the paperwork can lead to dismissal or denial of the petition. This underscores the importance of meticulous attention to detail when preparing bankruptcy documents.
  • Fraud: Bankruptcy fraud, such as concealing assets, providing false information, or attempting to defraud creditors, is a serious offense that can result in petition denial, criminal charges, and other legal consequences.
  • Challenges from creditors: Creditors have the right to challenge a bankruptcy petition if they believe it is filed in bad faith or if there are grounds to dispute the discharge of debts. These challenges can lead to litigation and potential denial of the bankruptcy petition.

Importance of Legal Assistance

Given the potential pitfalls and challenges involved in the bankruptcy process, seeking the assistance of a qualified bankruptcy attorney is essential. It’s one of the best things you can do to drastically reduce your risk of denial.

Bankruptcy attorneys provide:

  • Legal expertise
  • Protection of rights
  • Mitigation of risks
  • Guidance and support

While bankruptcy petition denials are relatively uncommon, they can have serious consequences for individuals seeking debt relief. Working with an attorney helps you reduce your risk of denial. They understand what raises red flags and how to deal with questions from creditors and from the court.

If you’d like to know more about reducing your risk of bankruptcy petition denial or you’re ready to speak to someone about filing, contact the Law Offices of Robert M. Geller at (813) 254-5696 to schedule a free consultation with an experienced attorney.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

Can You File Bankruptcy with Equity in Your Home?

For many individuals facing financial hardship, their home represents their most significant asset. However, when struggling with overwhelming debt, the...
Read More

Are Trusts Protected from Bankruptcy?

Trusts are powerful estate planning tools. They allow people to protect and distribute their assets according to their wishes. This...
Read More

The Truth About Bankruptcy and Buying a Car

The Truth About Bankruptcy and Buying a Car Bankruptcy often carries a stigma of financial ruin and a bleak future....
Read More

How Do Bankruptcy Lawyers Get Paid?

Bankruptcy can be a stressful and overwhelming experience, but having the right legal representation can make all the difference in...
Read More

Do You Lose Your Home When You File for Bankruptcy?

Filing for bankruptcy can be a daunting prospect, especially when it comes to concerns about losing one's home. Your home...
Read More

Can You File Bankruptcy During a Divorce?

Divorce and bankruptcy are personally difficult and also complex legal processes that can have significant implications for your financial future....
Read More

Can You File Bankruptcy on Restitution?

Facing financial struggles can be overwhelming, especially when debts include complex legal obligations like restitution. What is restitution and how...
Read More

Can You File Bankruptcy After a Judgment?

Receiving a judgment against you in a lawsuit can be a distressing experience. This is especially true if you're already...
Read More

Can Back Taxes Be Included in Bankruptcy?

Dealing with back taxes can cause a lot of stress and financial burden for anyone facing financial hardship. If you're...
Read More

Can an Estate File for Bankruptcy?

Many people wonder whether or not an estate, such as the one left behind after someone passes away, can file...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions