5 Reasons Your Chapter 7 Bankruptcy Discharge May Be Denied

A chapter 7 bankruptcy filing can be one of most effective tools for reducing or eliminating your personal debt, but there are strict guidelines regarding the discharge. A failure to comply with any of the numerous provisions will likely result in the courts denying the discharge of your debt. The following is a brief overview of some of the things you want to avoid doing to ensure your chapter 7 bankruptcy discharge is approved. 

Attempting To Conceal Property

One of the surest ways to have your discharge denied by the courts is to attempt to conceal your personal property. This includes everything from shipping your belongings to an overseas friend to transferring ownership of such property to a family member or colleague.

However you go about it, concealing personal property from the courts is a blatant disregard for the bankruptcy process and grounds for a quick denial concerning the discharge of your debts. 

Altering Or Destroying Financial Records

Any attempt to destroy or otherwise modify financial records may also result in a denial of your discharge. In certain instances, individuals may even do this with legitimate reasons, such as reconciling statements that were incomplete. Nonetheless, the courts often regard this as fraudulent misrepresentation of your true financial standing. When it comes to your financial statements, the most important thing you can do is present them to the courts as-is once the bankruptcy process is underway. 

Failing To Complete The Financial Management Course

Every debtor who files for a chapter 7 bankruptcy must complete a financial management course before their discharge will be granted. The courts are very clear on this prerequisite, and a failure to complete this course will likely result in your discharge being denied. 

Failing To Report Prior Bankruptcies

The courts will also likely deny your discharge if you aren't forthcoming about prior bankruptcies. Even if the bankruptcy occurred twenty or thirty years ago and poses no threat to your current filing, it is still necessary to inform the courts that it took place. This is yet another action that the courts regard as dishonest and unscrupulous, and may be the reason for your discharge denial.

Previous Bankruptcy Filings

While most of the preceding items on this list are ultimately subject to the discretion of the courts, there are certain things that are beyond even their control. 

Among them are previous bankruptcy filings that occurred in the years leading up to your current filing. For previous chapter 13 bankruptcies, your discharge will be denied if you received a discharge in the last six years. For previous chapter 7 filings, the number is eight years.

Overall, there a number of reasons your bankruptcy discharge may be denied, but most of the time the reasons are not only foreseeable, but also avoidable. Of course, a chapter 7 bankruptcy attorney from a firm like Wagner Law Office PC will be able to help determine just whether or not you qualify for a discharge of your debt.