People who are facing insurmountable debts often seek bankruptcy protection. At the end of the process, they expect their debts to be discharged. However, not every bankruptcy case ends in a discharge. There are several reasons why bankruptcy petitions can be denied.

The chief cause of bankruptcy cases going off track is the debtor’s failure to disclose detailed information about their assets, debts and current earnings. When disclosing assets, the debtor must include all bank and financial institution accounts and any other property owned. If a debtor comes into possession of an asset during the bankruptcy, such as an inheritance, he or she is required to disclose it to the court. The debtor must also properly account for the loss of property or funds.

Other factors that can lead to denial of a bankruptcy discharge include:

• False statements about assets, earnings or debts
• Any attempt to hide assets by transferring those assets to another person before or during the bankruptcy proceeding
• Destruction of financial records, accounting ledgers or other documents
• Failure to complete the credit counseling and financial management course required of all bankruptcy filers
• Having received a Chapter 7 discharge within the past eight years or a Chapter 13 discharge in the past six years, or having failed to disclose a past bankruptcy
• Failure to meet the means test, which bars Chapter 7 relief to debtors whose income and assets allow them to pay off part of their debts under Chapter 13
• Violation of a court order
• Any other actions or omissions that could indicate bad faith

The above list points to the necessity for the debtor to be completely candid and forthcoming with his bankruptcy attorney so that the bankruptcy petition and related filings can be completely and accurately prepared to ensure the proceeding runs smoothly and results in the discharge being granted by the court.

If you are having serious financial problems, talk to an attorney at the Law Offices of James C. Zimmermann. We may be able to help you get back on track through bankruptcy or other debt relief options. Arrange a free attorney consultation by calling 973-764-1633  or contacting us online. Our New Jersey offices are conveniently located in Hackensack, Vernon, Wayne, Pompton Lakes and Nutley.