Filing for Chapter 7 bankruptcy is a major step toward financial relief, but what happens if the trustee denies your case? What happens if the trustee in Chapter 7 denies your bankruptcy in Michigan?
If the trustee in Chapter 7 denies your bankruptcy, your case may be dismissed, or you may be required to take corrective actions, such as providing additional documentation or addressing legal objections.
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Frequently Asked Questions
Can I refile for Chapter 7 if my bankruptcy is denied?
Yes, if your Chapter 7 case is denied due to missing documents or errors, you can correct the issues and refile. However, if the denial was due to fraud or ineligibility, you may need to explore other debt relief options.
What if I don’t qualify for Chapter 7 bankruptcy?
If you don’t qualify for Chapter 7 due to income limits, you may be eligible for Chapter 13 bankruptcy, which allows you to repay debts over time through a structured plan.
How long do I have to wait before refiling a denied Chapter 7 case?
The waiting period depends on the reason for denial. If your case was dismissed without prejudice, you may be able to refile immediately. If dismissed with prejudice, you may have to wait 180 days or longer.
Will I lose my assets if my Chapter 7 is denied?
If your case is denied, the automatic stay is lifted, meaning creditors can resume collection efforts, including wage garnishment, bank levies, and foreclosure actions.
Can a trustee deny my Chapter 7 discharge after my case is filed?
Yes, a trustee can object to your discharge if they suspect fraud, failure to disclose assets, or failure to complete required bankruptcy courses. Working with an attorney can help avoid these issues.