If you've run into a host of financial problems and cannot find a way out, it's likely you are headed for a bankruptcy filing. Not every bankruptcy plan will be approved though. There are quite a few reasons why bankruptcy filings are denied by the court. So, what are those reasons? We will take a look at them in today's post.
One of the most common reasons why a bankruptcy filing is denied is because you fail to provide the right tax documents or do not show up for the meeting with your creditors. You must supply all of the required tax documents when filing for bankruptcy. You also must attend the meeting with your creditors. When filing bankruptcy under Chapter 13, you must provide the previous four year's worth of returns.
When entering into Chapter 13 bankruptcy, you must submit a repayment plan. This means that you will need to repay some of the debt that you have to your name over a set period, which usually lasts anywhere from three to five years. The repayment plan you create must be considered feasible by the court in order for it to be approved.
Your assets, debt and current income will be reviewed by the court to determine if you can actually repay the debt as described in your plan. If this is not realistic, the court will reject the plan. You might be allowed to file again with a new plan, but it's best to have a good plan in place the first time.
Are you preparing to file for bankruptcy in Long Island? An experienced bankruptcy law attorney can help. Working with an attorney will help to reduce the chances that your plan is denied by the court.
Source: AOL, "Bankruptcy Blunders: Top Reasons Your Bankruptcy Filing May Be Rejected," accessed Dec. 01, 2017