Deciding to file for bankruptcy is a major financial move. Once a person takes the plunge, it can be jarring and frustrating if the court rejects the case. A rejected bankruptcy case is one that’s dismissed without discharge; in other words, the court kicks the case out with granting any debt relief.

Here’s a look at some of the top reasons a court might reject a bankruptcy case and how you can avoid getting yours thrown out.

  • You don’t pass the Chapter 7 means test. Since the bankruptcy reforms passed in 2005, all Chapter 7 filers have had to qualify under the “means test”. The test is essentially an evaluation of income: those who “pass” the test prove that they don’t have enough income to repay their creditors. Those who “fail” the test simply have more than the allotted income. But those who are rejected from Chapter 7 may still be able to file under Chapter 13.
  • You don’t provide tax documents. Though specific requirements vary from state to state, many states require bankruptcy filers to submit tax returns for the four years preceding their bankruptcy petition. If you’re considering bankruptcy, it’s a good idea to get your tax documents together before submitting your petition to the court.
  • You don’t attend the creditors meeting. Filers must attend the “341 meeting” (also called the meeting of the creditors) to testify to the truth of the information in their bankruptcy papers. Failing to do either of these things can lead to dismissal of the case.
  • Your Chapter 13 repayment plan is unrealistic. Chapter 13 bankruptcy requires filers to make regular payments to creditors for several years. The court reviews all repayment plans, along with figures on income, assets and expenses. If the numbers don’t jive, the case can be rejected.
  • Your Chapter 7 case is challenged. When you file your Chapter 7 case with the court, you are essentially applying for the legal elimination of all debts included. While the court grants discharges in most Chapter 7 cases, a valid challenge from a single person could end your case (or revoke your discharge). Challenges identify reasons why a filer is not eligible for a Chapter 7 discharge. These reasons include bankruptcy fraud (lying about or concealing assets), inaccuracy on bankruptcy petitions, failing to complete one of the bankruptcy court’s requirements and more.

Bankruptcy is a complex legal process and can be difficult to navigate without the help of someone familiar with the legal system. Most bankruptcy insiders (including the U.S. government) recommend working with a bankruptcy lawyer to help make your case go as smoothly as possible.

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