what happen if my chp 7 is denied?

[myfirstbk]

Ok, had my 341...and everything seems fine. Some of the questions i have are... what happen if my chp 7 is denied? whats next? and also if there are objections by some of the creditor but not all... what happen then?

please advise... thanks

ps: should i be getting a letter in the mail soon regarding attending the 341 meeting? cause after the questions that the trustee asked, they didn't give me anything back.

thanks

[HHM]

To your last question first: You more than likely will not get a letter regarding your 341 meeting.

In bankruptcy, denying a chapter 7 is a term of art. There are 3 possible outcomes in a chapter 7

1. Discharge and Closeing=this is what you are aiming at. To recieve your discharege in bankruptcy
2. Dismissal: for whatever reason, your case is dismissed. This is not a good result, but its not the worst. Basically, after dismissal, you are in the same position you were in before you filed. Except that there may be a time limit on when you can refile in order to receive a discharge
3. Denial of Discharge: this is the worst possible outcome and usually results when there is clear fraud. I won't go into all the details, but the net result is, if you are "denied" a chatper 7 discharge, none of the debts you listed in your bankruptcy can ever discharged in the future.

Creditors can really only object to the discharge of their particular debt. If the do, you will recieve a summons and complaint from that creditor iniating an adversarial proceeding in bankruptcy court. You can still receive your discharge even though you have pending objection to discharge of a debt proceeding pending.

[myfirstbk]

thanks. now if I was denied of discharge or dismissed, will that go into my credit report still as a bankruptcy?

[HHM]

thanks. now if I was denied of discharge or dismissed, will that go into my credit report still as a bankruptcy?

Yes, it will be reported.

But let's back up, why do you think you are at risk for dismissal, what did the trustee say at the 341 meeting. Denial and Dismissal do not come out of the blue, you will generally have an idea if its likely based on the comments of the trustee at the 341 meeting.

Also, Denial is pretty harsh, that is usually reserved for the worst fraud, i.e. concealing major assets from the bankrkuptcy. Denial is also accompanied by civil or criminal prosecution for bankruptcy fraud. So unless you have off shore accounts, and house in the caymans, and yacht docked in Caan, and didn't put those assets in your BK, denial is the least of your worries.

[myfirstbk]

well on my asset list i wrote down that I have a car payment. But the car is not under my name, so I didn't list my car as my asset. SO she asked me why I have a car payment of 237 dollars a month. So i said that my credit was so bad that a friend use his credit to buy me a car, but I would be making the monthly payment. She then asked me so whos car is it.. .i didnt' lie so i told her its my car with his name on it.

please advise... other than that... everything else was fine. I help out my mom for giving her 700 dollars for rent money, then she ask me if I was interested or had my name on the residence, i told her no. I'm just helping my mom to pay the mortgage every month.

any ideas?

[ducksinarow]

We have two vehicles like that. They are both in my in laws' names because they could get a better interest rate and offered.

We did not list either one of them as assets, as they are not ours. I had to provide proof that the payments come out of our checking acct. every month and insurance papers showing that we are the ones who keep insurance on the vehicles. My attorney acted like it was no big deal at all.

[myfirstbk]

We have two vehicles like that. They are both in my in laws' names because they could get a better interest rate and offered.

We did not list either one of them as assets, as they are not ours. I had to provide proof that the payments come out of our checking acct. every month and insurance papers showing that we are the ones who keep insurance on the vehicles. My attorney acted like it was no big deal at all.

did you have to prove it at the 341 meeting?

[okane]

What is a common reason that a bankruptcy would get dismissed

Ok, so usually a denial is from major fraud reasons. So, what are main reasons a bankruptcy would get dismissed?

[hhou812hh]

We have two vehicles like that. They are both in my in laws' names because they could get a better interest rate and offered.

We did not list either one of them as assets, as they are not ours. I had to provide proof that the payments come out of our checking acct. every month and insurance papers showing that we are the ones who keep insurance on the vehicles. My attorney acted like it was no big deal at all.

You are allowed reasonable transportation expenses no matter what. If you are making payments with your car under your name or making payments to someone else the expenses should be ok. Was the car yours and transferred below FMV to your friend, or did your friend buy it for you and you are paying the payments? The trustee usually asks if you are hold assets for someone else and is someone else holding assets for you.
I'm not sure about your case, but as long as there was no illegal transfers of the car it shouldn't be a problem. If your atty said it was ok then I wouldn't worry about it.

[ducksinarow]

I'm the one that said my attorney was fine with it, and I am not the OP of this thread. I think you got confused. I am not worried about mine, I was trying to help the OP by giving my situation.

[ducksinarow]

did you have to prove it at the 341 meeting?

I have not been to my 341 yet, but the proof is already there in my paperwork that was filed so it won't be a big deal.

[HHM]

Dismissal can happen for any number of reasons...not showing up to the 341 meeting, not cooperating with the trustee (i.e. by not providing the paperwork the trustee asks for), bad faith, too much income.

Dismissal is usually what happens when the person filing does not have their ducks-in-a-row or go in without knowing anything about bankruptcy.

[hhou812hh]

I'm the one that said my attorney was fine with it, and I am not the OP of this thread. I think you got confused. I am not worried about mine, I was trying to help the OP by giving my situation.

Sorry, I was "speed reading"! My girlfriend was calling me and I had to rush away.

[sunshine08]

myfirstbk - i hope you didn't chose that name with a series to follow. Are you just overly anxious or did the trustee seem to have just issues with your case. Did you have an attorney? Keep us informed. I'm sure it will be ok.

[concerned]

How much is too much income?

My husband and I just filed for hopefully 7, basically due to our home. We are very nervous that it will be switched to a 13 or denied altogether. We earn approx. $80,000, but just got way in over our head with building a home. The costs ended up being much more than we planned on. We were originally going to do a deed in lieu, but our attorney says there isn't time to try for that & still file Ch. 7 under old bankruptcy law.

Didn't mean to jump this thread, but I saw the comment about income and thought I would ask!