A bankruptcy petition can be denied by the court for various reasons. Initially, the court may deny the petition based upon the debtor’s failure to demonstrate the reasons for the loss of his or her assets. In addition, the bankruptcy court may deny the bankruptcy petition based upon an illegal transfer of assets which the debtor transferred in order to hide from the court. For instance, the debtor transferred a house for below fair market value in order to prevent the house to be considered an asset of the estate during the bankruptcy proceeding. Furthermore, the bankruptcy petition may be denied based upon a procedural error. Moreover, the bankruptcy court may deny a petition where the debtor lied to the court or falsified documents presented to the court, thereby committing perjury. Finally, the court may deny a bankruptcy petition where the debtor fails to adhere to court orders relating to the case.
Options if a Bankruptcy Petition is Denied
If a bankruptcy petition is denied, there are some options a debtor may have. Initially, if the denial was based upon failure to adequately explain some aspect of the bankruptcy, the debtor may be able to recommence a bankruptcy action. Additionally, if the bankruptcy was denied based upon a procedural error, it may be possible to reopen the bankruptcy case based upon the circumstances, or re-file the matter.
Getting Legal Help
If you have experienced the denial of your bankruptcy petition, you should consider consulting with an experienced bankruptcy attorney. Despite the denial, you may still have other options available to you. An experienced attorney can not only review your case in order to assess your options, but also the attorney can help you determine the best options for your particular case.
