Can You Be Denied the Right to File for Bankruptcy?

 Posted on June 13, 2025 in Bankruptcy

Bankruptcy is often seen as a lifeline for people facing crushing debt. However, that lifeline can quickly disappear if the court denies your case. Filing for bankruptcy is not automatic relief; it is a legal process with strict qualifications and procedures. Many people are surprised to learn that their bankruptcy can be denied due to errors, ineligibility, or misconduct. With so much at stake, having a skilled Kane County bankruptcy lawyer on your side can make all the difference in securing the debt relief you need.

What Legal Standards Must You Meet to File?

Bankruptcy eligibility depends on the type of bankruptcy you are pursuing. For Chapter 7 bankruptcy, your income must be low enough to pass the "means test," which compares your household income to the median in your state. For Chapter 13, you must show that you have regular income and that your secured and unsecured debts fall within the legal limits.

These requirements ensure that bankruptcy relief is available to people who truly need it and can responsibly follow through with the process.

What Misconduct Could Lead to Denial?

Bankruptcy fraud or dishonesty can lead to a denial of discharge. This means your debts will not be wiped out, and you will remain legally responsible for repaying them despite going through the bankruptcy process. A court can deny a discharge if you:

• Intentionally provide false information or omit crucial details on bankruptcy forms

• Hide assets or make transfers to avoid losing property to creditors

• Destroy, conceal, or fail to produce financial records

• Refuse to comply with court orders during the bankruptcy process

These actions can not only result in case dismissal but may also expose the filer to criminal penalties.

Can You Be Denied for Filing Too Soon?

There are mandatory waiting periods between bankruptcy filings if you want your debts discharged. If you received a Chapter 7 case discharge, you will need to wait eight years before filing Chapter 7 again. Filing Chapter 13 after a Chapter 7 case requires a four-year wait, while filing Chapter 7 after a Chapter 13 case requires a six-year wait, unless certain repayment conditions were met.

Even if you file before these timeframes have passed, the court may allow the filing but deny a discharge of your debts.

What Procedural Mistakes Can Cause a Dismissal?

Failing to follow procedural requirements can also lead to denial. Common mistakes include:

• Not completing mandatory credit counseling

• Failing to file all required documents

• Missing deadlines set by the bankruptcy court

These issues often result in the court dismissing your case without providing any debt relief.

How Can You Avoid a Bankruptcy Denial?

Preparation and honesty are essential in order to avoid having your case denied or dismissed. Working with a knowledgeable bankruptcy attorney can ensure you meet all legal and procedural requirements. You should be completely transparent about your financial situation, comply with all court instructions, and avoid suspicious transfers or purchases before filing.

Taking these steps can help protect your right to relief and set the foundation for a successful financial recovery.

Consult with a Kane County, IL Bankruptcy Attorney

If you are considering bankruptcy, you must meet all the necessary requirements and avoid the mistakes that can cause a denial. A trusted Geneva, IL bankruptcy lawyer at DLAW, PC will work with you to evaluate your situation and help you make informed decisions. Call 331-222-7978 today to schedule a consultation with Attorney Deanna L. Aguinaga Walker and take the first step toward a stronger financial future.