Many situations could raise the need for a fresh financial start. Loss of a job, excessive medical bills, house foreclosure – these are examples of cases that could leave you with huge debts. Filing for bankruptcy might be the best solution to your problem. Your application, however, might be turned down for various reasons.
With mounting debts and creditors after you, you might not have the luxury of time to file another application after rejection. Hiring a bankruptcy attorney in Salt Lake City is the best way to ensure your request is accepted on time. Here are some common pitfalls that lead to dismissal of bankruptcy applications:
Failing the means test
A means test is a method used by the court to determine the amount of disposable income in your possession. It is a pre-requisite when filing for chapter 7 bankruptcy. If the court considers your disposable income as too much, it may turn down your bankruptcy request.
Failing to furnish the court with all required information
For you to qualify for bankruptcy, you need financial documents to back up your application. Should you fail to provide all the required documents, the court will dismiss your case. Providing the documents but misrepresenting any information will also lead to rejection.
Providing an impractical repayment plan
Chapter 13 bankruptcy filing requires you to repay your debts over a specific period. When filing this type of bankruptcy, you should furnish the court with your repayment plan. This plan should be feasible according to your current assets, debts, and income. If the court deems it unrealistic, it will dismiss your request.
Bankruptcy might seem like a trivial matter of filing some forms to discharge your debts. This is not the case, however. This is why DIY bankruptcy filing might be a waste of precious time with multiple court dismissals. Save yourself the hassle and rejection by hiring a bankruptcy attorney.