Can Bankruptcy Be Refused?

Bankruptcy cases can be confusing and difficult for individuals seeking them outA pile of money with a gavel and the words, "can my bankruptcy case be refused?". Some debts cannot be discharged under a personal bankruptcy case and others are extremely difficult to have discharged, such as student loan debt. In some cases, there are times when a court may deny your entire discharge. In other words, your bankruptcy case will be dismissed. This results in you still being held liable to pay back all of your debt. What circumstances lead a court to throw out your bankruptcy case? Trusted bankrupt attorney Alison Grant has the answers.

Attempt to Defraud

If the debtor looking for bankruptcy purposely transfers, removes, destroys, or conceals property within one year before filing with the intent to defraud a creditor, the bankruptcy case may be denied. This rule is designed to protect creditors by prohibiting a debtor from simply giving away assets before or during the time of bankruptcy.

When you hire a bankruptcy attorney, it is extremely important that you are open and honest about all transfers or changes to your property prior to filing for bankruptcy. If you lie to the court or withhold information, you run the risk of the court denying your case.

Hiding or Destroying Financial Information

Your bankruptcy case can also be refused if you decide to withhold, hide, or destroy any information concerning your current financial situation. For example, if you destroy documents concerning property that you haven’t disclosed to the trustee or your bankruptcy attorney, you could be considered to be purposely withholding information. This also applies to situations where you make assertions about your current financial situation but have no documentation to back up your claims.


Lying will always result in not only a loss of trust between you and your attorney but also between you and the court. If you try to lie about your case or make false statements, the court will almost always deny your case. When you file for bankruptcy, you are declaring under penalty of perjury that everything you say or claim is true and accurate. Any purposeful hiding of information or lying that comes to light can be challenged by the creditor or trustee, resulting in the dismissal of your case. Always be open and honest with your bankruptcy attorney, for the repercussions of doing otherwise are very high.

Loss of Assets

Always make sure you can explain and show what happened to a lost asset or what caused a deficiency in the asset. Remember, Chapter 7 bankruptcy typically allows debtors to keep their property, so your assets will most likely be protected.

Not Complying With the Court

If you decide that you will not obey the order of the court, this could mean instant trouble. In turn, your bankruptcy case will most likely be denied because of your failure to comply with the court’s rules.

Failure to Take the Instructional Course

An instructional course about personal financial management is a requirement of the law from the United States Bankruptcy Code for individuals filing for bankruptcy. Under this code, the instructional course is made up of two sections: credit counseling (which is to be done before you begin your bankruptcy case) and financial management (to be completed during your case).

Failure to complete either of these two sections will result in the denial of your bankruptcy claim. Your bankruptcy attorney can help you find where to take these courses to comply with the U.S. Bankruptcy Code.

Alison Grant, Attorney at Law Can Help!

Having a bankruptcy attorney on your side can help ensure a successful discharge of your debts and the avoidance of a case refusal. Alison Grant works hard to ensure that her clients are taken care of regardless of their financial situation. Contact Alison Grant today to schedule a consultation or for more information on bankruptcy.