Debt resolution is often necessary for those needing a fresh financial start. However, it is essential to note that not all bankruptcy filings go according to plan.
Sometimes courts dismiss bankruptcy cases, leaving borrowers in a difficult position. As you consider whether bankruptcy is the best choice for you, asking yourself questions like these may help you minimize disappointment:
Do I meet the eligibility requirements?
To qualify for bankruptcy protection, you must meet specific criteria, such as passing the means test. Exceeding the income limits may give a court reason to dismiss your case.
Have you abused your legal resources?
In some cases, individuals take advantage of the bankruptcy system by repeatedly filing for bankruptcy to delay or avoid debt repayment, which is known as serial filing or filing in bad faith. A history of this type of behavior may limit your options for a period of time.
Do creditors have sound reasons to object?
Lenders have the right to raise objections during your bankruptcy process. Presenting a valid complaint, such as claiming that you have sufficient assets to repay your debts or disputing the accuracy of the financial information you provided, could result in dismissal unless you provide sufficient evidence to support your case.
Increase your chances of getting debt relief
Challenging financial situations are stressful enough without roadblocks to getting the help you need. Seek professional advice, carefully follow all legal requirements and act in good faith throughout the bankruptcy process to increase your chance of a successful outcome.