Almost nothing about filing for bankruptcy is easy. A New York resident may struggle with the decision of whether to file for a considerable about of time before starting the process. Once the paperwork is completed and the filing is offered, he may find himself waiting and working hard to find a reasonable solution to his financial troubles. Even then, after believing he did everything that he had to do to complete the process, he may find that his request for bankruptcy protection is denied.
There are a variety of reasons why a court may deny a claim. First, breaking the law by committing fraud against the court will often be met with a denial of one's request. Such fraud can include concealing or destroying assets to keep them out of the bankruptcy estate. Perjury, or lying under oath during a bankruptcy proceeding, is also sometimes met with a denial of one's bankruptcy request.
Non-criminal factors can also result in a person's Chapter 7 bankruptcy filing being denied. If a person's records of assets, payments and wealth are not complete or are otherwise faulty, his claims may be denied. A request may also be denied if a person fails to satisfy an order of the bankruptcy court or other legal requirement put upon him by the bankruptcy process. There are many requirements a filer must meet that can be missed if the filing party is not familiar with the bankruptcy process.
This post only touches on a handful of the reasons that a bankruptcy court may deny a person's personal bankruptcy request. For individuals who have had their requests denied, help may be available. Attorneys who practice in the bankruptcy field may be able to help them sort out their legal troubles and refile with more complete and accurate data.