Your financial situation is dire, and now, you’re looking to file for bankruptcy. This could be a great move. It could get you back on your feet and, eventually, lead to a higher credit score and overall better credit report.
However, there are rules you’ll have to follow when filing for bankruptcy in Ohio. If you don’t – and you don’t meet the requirements for bankruptcy – then you could get denied.
Learn what could cause a bankruptcy denial in Ohio before deciding to file for it.
You Don’t Qualify for Chapter 7 Bankruptcy
One of the most popular kinds of bankruptcy is Chapter 7, which will discharge most types of debt, aside from child support payments, alimony, and student loans, to name a few. However, you may not qualify for it, in which case, you will most likely end up filing for Chapter 13 instead. Keep in mind that if you filed for Chapter 7 bankruptcy within the past eight years, then you cannot file again.
If you filed for Chapter 13 bankruptcy, another often-used type of bankruptcy, then you have to wait at least six years between filings. Additionally, in light of Covid, the total of your combined secured and unsecured debts for Chapter 13 cannot exceed $2,750,000. This will be good for two years from June 21, 2022. After June 21, 2024, the debt limits will return to what they were prior to this amendment. These amounts are $465,275 for unsecured debts and $1,395,875 for secured debts.
You’re Committing Fraud
Within a year of filing for bankruptcy, you cannot remove, transfer, or conceal property you own. This means that you can’t sell your car or your fur coat or your jewelry for a very low price or give it away to someone, especially to a friend or family member, for instance. If you try to hide your assets, this is considered fraudulent. Additionally, it’s considered fraud if you turn in incomplete forms or falsify information on purpose. Not only could your bankruptcy be denied, but you could also face criminal charges. It’s critical to speak to a bankruptcy professional, like an attorney, who will ensure that you’re doing everything right when filing.
You Fail to Go to Take a Debtor Education Course
Whether you file for Chapter 7 or Chapter 13 bankruptcy, you are required to participate in a debtor education course. There, you will learn how to manage your finances so that you don’t end up having to file for bankruptcy again. If you don’t finish the course and get a certificate of completion, which is filed with the court, your bankruptcy case will be closed without a discharge. Once this is done, you will be required to reopen your case in order to file the certificate for the Debtor Education Course. This will require spending additional funds for attorney fees and court costs.
You’re Not Complying With Court Orders
When you file for bankruptcy, you need to file complete and accurate paperwork with the Court. You must also comply with any court orders or requests made by the Trustee appointed in your case. If you fail to do these things, the trustee in your case can ask to revoke your discharge or move to dismiss your case, and your bankruptcy discharge may get denied. You need to keep track of all the necessary filings and court orders.
Making Sure Your Bankruptcy Goes Through
The best bet you have for making sure your bankruptcy is not denied is to work with a bankruptcy attorney. They will guide you on the right steps to take to get your finances in order and let you know if Chapter 7 or Chapter 13 bankruptcy are options for you. Filing for bankruptcy can be a confusing and time-consuming process. It’s not worth it to do all that work on your own and end up getting denied. An attorney is there for you to navigate you through it.
Get in Touch With Richard P. Arthur
Richard P. Arthur, Attorney at Law, can help you file for bankruptcy in Ohio. You can call 937-254-3738 for a consultation. He has more than three decades of experience helping clients in Dayton and Trotwood, as well as Montgomery, Greene, Miami, Clark, and Warren counties.