Bankruptcy is an essential financial protection that allows eligible individuals to get out from under the thumb of crushing, unmanageable debt. While declaring bankruptcy does have a significant effect on your credit score, it can also make a world of difference in your quality of life and allow you to start fresh. However, many people who file for Chapter 7 bankruptcy may be surprised to learn that a bankruptcy court could decide not to discharge a case, even after the debtor meets with the trustee and her creditors. To learn more about why a Chapter 7 bankruptcy might not be discharged, read on.
Reasons a Chapter 7 Bankruptcy May Be Denied
When someone files for bankruptcy, she must provide the bankruptcy court with a full and honest accounting of her financial situation. This includes the debtor’s creditors and the amount and nature of each debt, the debtor’s income and its source, the debtor’s property, and the debtor and her family's living expenses.
A crucial part of the bankruptcy process is the meeting of creditors. During the meeting, the trustee assigned to a case will ask questions of the debtor to probe the accuracy of the debtor’s statements and her understanding of the bankruptcy process. The debtor’s creditors will then have an opportunity to speak to the debtor and the trustee.
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