Bankruptcy Rejections: What I Should Know to Avoid Them

Almost 1.6 million individuals and businesses in America filed for bankruptcy in 2010, a nine percent increase from the previous year. With so many people filing for bankruptcy, there is no guarantee that an individual will be granted debt forgiveness just because he or she files for bankruptcy. Bankruptcy courts have the right to reject any filing if the filer does not fulfill the related requirements. Consulting with a skilled and experienced bankruptcy attorney can help you to avoid committing mistakes that lead to a needless rejection.

Facing financial difficulty can have a far-reaching negative effect on your life. If you or someone you know is struggling and considering a bankruptcy filing, we can help. Contact the Boston bankruptcy lawyers of Joshua Spirn & Associates by calling 800-975-5346 to schedule a free consultation to discuss your legal options.

What You Need to Know

Each form of bankruptcy has a different set of requirements that applicants must meet before they can be granted debt forgiveness. For example, the two chapters for individual bankruptcy – Chapter 7 and Chapter 13 – have different requirements. To file for Chapter 7 bankruptcy protection, a debtor must be able to demonstrate an inability to pay his or her debts based upon the Means Test, which evaluates income, liabilities, and compares the debtor with the median income level in the state.

A Chapter 13 filing does not depend upon the Means Test, and instead it requires applicants to present a repayment plan that they intend to abide by in order to satisfy their debts over time. If the plan is poorly constructed or does not persuade the judge that a debtor will be able to make the proposed payments, then it may be rejected.

Contact Us

For help determining whether a bankruptcy filing may be helpful in your situation, and to ensure that you understand what you need to in order to prevent costly errors, contact the Boston bankruptcy lawyers of Joshua Spirn & Associates at 800-975-5346 today.