What Happens If My Chapter 7 Bankruptcy Case is Denied in South Carolina?
If your Chapter 7 bankruptcy case is denied in South Carolina, it means the court reviewed your petition and decided to deny your case because you failed to meet the eligibility requirements for Chapter 7 bankruptcy. What happens after will depend on why your case was denied.
However, one thing is for sure. You will still be on the hook to pay back all your creditors. They can initiate debt collection efforts again, meaning that you will have to deal with letters, phone calls, messages, and legal actions like foreclosure or wage garnishment. Having your Chapter 7 bankruptcy petition denied can be stressful and frustrating. However, you may still have a chance to get your financial situation back on track.
With help from a seasoned Columbia, SC, Chapter 7 bankruptcy attorney, you’ll understand why the court denied your petition, what consequences you can expect, and what specific steps you should take next to secure your financial future with confidence. If you have not spoken to a Columbia, SC, Chapter 7 bankruptcy lawyer yet, you can learn why your petition was denied and what you should do after receiving a Chapter 7 denial below.
Why Was My Chapter 7 Bankruptcy Case Denied in South Carolina?
A Chapter 7 bankruptcy case may be denied due to any of the following reasons:
- You did not pass the means test. This means your income is higher than the median household income in South Carolina, making you ineligible for Chapter 7 bankruptcy.
- Your bankruptcy petition contains incomplete or inaccurate information.
- You have previous bankruptcy filings and filed your Chapter 7 petition earlier than the mandatory waiting period, which is eight years after receiving a Chapter 7 discharge and six years after receiving a Chapter 13 discharge.
- The court determined you are guilty of bankruptcy fraud. Common bankruptcy fraud examples include hiding assets from creditors, filing false bankruptcy documents intentionally, lying about debts or income, and transferring assets to hide them.
- You have significant non-exempt assets (high-end vehicles, real estate, or art) that would have to be sold to pay off your creditors.
This is why it is recommended to retain a lawyer before filing your case, so that your situation can be properly reviewed and mistakes like this are not made. To better understand why your Chapter 7 petition was denied, discuss your case with a Columbia, SC, Chapter 7 bankruptcy attorney.
What Should I Do If My Chapter 7 Bankruptcy Case Was Denied in South Carolina?
First, you should reevaluate your financial situation with a Columbia, SC, Chapter 7 bankruptcy lawyer to explore your options. Perhaps filing for Chapter 13 might be best for your specific circumstances. Your lawyer can thoroughly explain why the court denied your petition, assess your eligibility for other bankruptcy chapters, and determine whether you can appeal the decision.
For instance, you may be able to file an appeal or refile your Chapter 7 bankruptcy petition if the denial was due to errors in your paperwork or procedural issues. Ultimately, having a knowledgeable Columbia, SC, Chapter 7 bankruptcy attorney on your side will help ensure that you avoid mistakes that could result in a denial.
Let Our Reputable Columbia, SC, Chapter 7 Bankruptcy Lawyer Fight for Your Financial Future
For more details about what our Columbia, SC, Chapter 7 bankruptcy attorney can do for you, contact the Reed Law Firm online or by phone to schedule your free initial case review.
