It may be the last thing you want to hear, but — if you don’t file Chapter 7 bankruptcy claims (or other types of bankruptcy claims, for that matter) correctly — your claim can be rejected. That may be hard to believe with as many as 1,071,932 successful filings in 2013, but it can happen… and it can happen to you. Here are a few scenarios when claims get rejected and you may want to bring in a Chapter 7 bankruptcy attorney:
Someone Challenges Your Claim
Before filing, know your Chapter 7 bankruptcy facts. Anyone can challenge bankruptcy requests “if you hide assets, make false statements about your circumstances, or even just fail to appear to take mandatory credit counseling,” according to DailyFinance.com. In other words, while Chapter 7 can eliminate debts, it is also a six month process on average — meaning it is a detailed and complicated process. Report all assets and income to the best of your knowledge, and, if you have any doubts about exactly how to do it, hiring a Chapter 7 bankruptcy attorney may be a wise move.
You Have A Turbulent Tax History
“With a Chapter 13 bankruptcy, you must file all tax returns for the four years prior to your bankruptcy filing,” DailyFinance.com continues. (Chapter 13 bankruptcy differs from Chapter 7 as it often involves a sole proprietor and may involve restructuring debt rather than liquidating it.) In order to successfully liquidate debts under Chapter 7, debtors must be able to present all of their tax forms as well. The tax requirement was voted into law in 2005. Exactly how and when the forms must be presented varies. Getting professional Chapter 7 bankruptcy help to adequately meet the requirement and fill out other forms — bankruptcy forms are complicated, resembling tax forms instead of simple check boxes — is often a wise move.
The last thing anyone wants when they file for bankruptcy is to have their claim rejected. Work with professionals, make certain you dot all of your Is and cross all of your Ts, attend mandatory financial counseling, and gather all necessary tax forms. Reference links.