Anyone who files for bankruptcy aims to see the bankruptcy discharge in the mail, whether they file Chapter 7 or Chapter 13 bankruptcy. This discharge lets the individual know that their debt is completely wiped out and that creditors will no longer be able to sue them in the future. There is a caveat that not all people who file for bankruptcy receive a discharge. For some who don't play by the rules or just make stupid mistakes, they may have their bankruptcy filing rejected.
For some, they'll get a dismissal without prejudice, meaning they can re-file at any time. Usually, it is because the person has not provided all the documents required by the bankruptcy court. Sometimes the person does not provide copies of their tax arrears or pay stubs. Some people misplace or omit a page from the bankruptcy petition. In order for the bankruptcy filing to progress, all documents must be submitted to the bankruptcy court for transmission to the trustee. The bankruptcy court will mail a letter to the person declaring bankruptcy explaining the missing document along with the time they have to return it. Otherwise, the bankruptcy will be rejected. Another thing that many people forgot was to take the post-bankruptcy financial management course and submit the certificate of completion to the bankruptcy court. Some of them take the course and fail to present the proper paperwork that results in their bankruptcy being rejected before the bankruptcy discharge. It & # 39; s just insane after going through all the hassle of the whole process and forgetting to submit a little thing.
Another thing that can cause the dismissal of a filing for bankruptcy does not submit all of the documents that the bankruptcy trustee will request. If applicable, the trustee will ask the individual depositor at the meeting of creditors were 341 meeting to submit additional information. Sometimes a bankruptcy trustee will ask for additional paperwork or proof of a person's employment or perhaps property. If the person does not submit it, they will receive a discrepancy notice sent for their bankruptcy filing which gives them some time to respond with the necessary documentation. If the person does not send it, their bankruptcy will be rejected. This is why the bankruptcy attorney will usually tell their client to make sure and open whatever the bankruptcy court might send them.
Many of these mistakes are avoided when the client has a bankruptcy lawyer with whom they have a great relationship. If the individual receives something in the mail, they can call the lawyer and ask them how to proceed. Or if there is something missing that the declarant needs to provide, the lawyer or their staff will call before it becomes a problem. This is available for those who are filing for do-it-yourself bankruptcy and that is why many of them will have a stack of issues to resolve if they want to get their bankruptcy discharge.