Your goal of having debts discharged could run into a wall if the Chapter 7 bankruptcy you file is dismissed. There are numerous implications of a bankruptcy dismissal, not least among them, the loss of protection that comes from an automatic stay from collection activities. It is therefore crucial that you enter into any bankruptcy filing fully prepared for the worst case scenario.
If your Chapter 7 bankruptcy is dismissed, you will remain fully liable for any debts and will once again begin to receive calls and other types of collection activities from creditors.
It is important to lodge truthful and complete information in bankruptcy papers, otherwise the court may dismiss a Chapter 7 as fraudulent and/or deny entry of a discharge. This can also result in fines and imprisonment, as bankruptcy fraud is a criminal offense. When you file for Chapter 7 bankruptcy, you must pass a means test. Those who fail the means test may have their filing dismissed or converted to Chapter 13, unless other circumstances demonstrate the case does not have a presumption of abuse.
If you have included all relevant information and passed the means test, which looks at your income, there is still a chance of having a Chapter 7 bankruptcy dismissed due to failing to follow-up on further required actions. Before filing, debtors are required to take a credit counseling class and then debt management course prior to discharges. In both cases, failing to submit the resulting certificates timely may result in a dismissal.
Unless you have applied for a waiver, under a Chapter 7 bankruptcy you are required to pay court fees. A waiver is rare, and is only granted after careful consideration of the debtor’s available income and ability to pay the fees without a waiver. Throughout the process, there are various documents which you will need to provide, such as tax returns and proof of earnings. At any stage, the court may consider dismissing a Chapter 7 bankruptcy if required paperwork is not received within relevant deadlines.
Finally, you are required to attend a hearing, which is referred to as a meeting of creditors. This gives the trustee and creditors the opportunity to question you further about details related to filing for Chapter 7 bankruptcy. While it is common for creditors to not show up at these meetings, it is important that you, as the party filing Chapter 7 bankruptcy, are in attendance. If you, the filer, fail to show up at the meeting of creditors will likely result in the trustee requesting a bankruptcy dismissal.
Bankruptcy Advice Georgia
The Chapter 7 bankruptcy process may sound complex and confusing, but it is designed to ensure the law is fair for both creditors and debtors. If you are concerned your Chapter 7 bankruptcy filing may risk being dismissed in Georgia, you can turn to a professional bankruptcy lawyer for consultation and guidance. H. Lehman Franklin has served the people of Georgia for over 30 years, providing excellence in debt management and bankruptcy support. Call today at 912-764-9616 or email us at firstname.lastname@example.org if you are in the process of filing for Chapter 7 bankruptcy and need further advice on how to help ensure your case results in the discharge of debts, and not the dismissal of your filing.