Reasons that Bankruptcies Are Denied in Pennsylvania

If you plan on filing for either Chapter 7 or Chapter 13 bankruptcy in Pennsylvania, you need to be prepared for the challenges you may face. So, before you file, it’s wise to learn why bankruptcies are most often denied in Pennsylvania.

If your Chapter 7 bankruptcy was denied in Pennsylvania, it was probably because you did not pass the means test or there were procedural issues. Chapter 13 bankruptcies are often denied because filers have too much debt and not a high enough income to support a reasonable repayment plan. When bankruptcy cases are dismissed, debtors can often refile. However, a dismissed case can make Pennsylvanians liable for their debts right away, which can cause further financial distress. To avoid such headaches, hire an attorney who will support and guide you through your Pennsylvania bankruptcy case from the very beginning.

Our dedicated lawyers are here to assist Pennsylvanians filing for Chapter 7 and Chapter 13 bankruptcy. For a free case evaluation with the Pennsylvania bankruptcy attorneys at Young, Marr, Mallis & Deane, call today at (215) 701-6519.

Common Reasons Why Chapter 7 Bankruptcies Are Denied in Pennsylvania

When Pennsylvanians face economic difficulties and need help, filing for Chapter 7 bankruptcy may be the path forward. While it’s not necessarily common for Chapter 7 bankruptcies to be denied in Pennsylvania, it’s possible. To avoid a case dismissal, Pennsylvanians need to learn the common reasons why Chapter 7 bankruptcies are denied.

As long as you pass Pennsylvania’s means test, which assesses your household’s income, you will qualify for Chapter 7 bankruptcy right away. One of the most common reasons that Chapter 7 bankruptcies in Pennsylvania are denied is that debtors’ incomes are too high.

That being said, Chapter 7 bankruptcy is relatively straightforward, with few eligibility requirements. Generally, denied bankruptcies in Pennsylvania stem from filing and procedural issues. Filing for Chapter 7 bankruptcy requires keen legal insight and an in-depth understanding of Pennsylvania’s Chapter 7 bankruptcy laws. Often, bankruptcy is denied because debtors don’t have a skilled attorney by their side to help them navigate this difficult process.

Therefore, hiring a Philadelphia bankruptcy attorney is crucial if you’re considering filing for Chapter 7 bankruptcy. Although the process may seem relatively simple, filing errors and miscommunications can lead to a denial of your Chapter 7 bankruptcy. That can leave you without a path forward towards financial recovery for you and your family.

Why Was My Chapter 13 Bankruptcy Denied in Pennsylvania?

Chapter 13 bankruptcies in Pennsylvania are much more complicated than Chapter 7 bankruptcies. The former calls for a reorganization of debt, while the latter calls for liquidation. Because of this, Chapter 13 bankruptcies are often denied when debtors have too much debt and too little income or are without a skilled attorney.

Too Much Debt

One of the main reasons that a Chapter 13 bankruptcy may be denied in Pennsylvania is if a debtor simply has too much debt. Reorganizing your debt and figuring out a repayment plan can be difficult if you owe too much. Essentially, Chapter 13 filers need to have a total amount of secured and unsecured debt below the threshold in Pennsylvania. Your Pennsylvania bankruptcy attorney can calculate your total debt to ensure that you’re not denied Chapter 13 because you owe too much to creditors.

Low Income

When you file for Chapter 13 bankruptcy in Pennsylvania, you don’t have to liquidate your assets or pass a means test. Instead, your attorney will figure out a repayment plan to help you ultimately get out of debt. Unfortunately, when debtors’ income is insufficient to repay debts within an appropriate timeframe, their Chapter 13 bankruptcy may be denied in Pennsylvania.

Procedural Issues

Similar to Chapter 7 bankruptcies, Chapter 13 bankruptcies can be denied in Pennsylvania when filers don’t meet the procedural requirements. Filing for Chapter 13 bankruptcy is complicated. There are multiple court fees, complex paperwork, and mandatory course filers are responsible for. If you don’t have an experienced Bethlehem bankruptcy attorney, you may become overwhelmed and make an error when filing for Chapter 13 bankruptcy. If that happens, your attempt to get out of debt may be unsuccessful.

What Should I Do if My Bankruptcy Case Was Denied in Pennsylvania?

If your bankruptcy petition is denied in Pennsylvania, you may feel at a loss. The good news is that debtors can often refile right away. Of course, going through the filing process a second time is never ideal. That’s why Pennsylvanians should hire an experienced lawyer they can trust from the beginning.

When bankruptcy cases are dismissed without prejudice in Pennsylvania, meaning no fraud was involved, debtors can reapply almost instantly. If your case was denied because of disorganization or procedural issues, hire an attorney to ensure that doesn’t happen again. If your case was denied because you didn’t meet the requirements for Chapter 7 bankruptcy, your lawyer can help you explore the benefits of Chapter 13 bankruptcy. When bankruptcies are denied with prejudice, debtors may not be able to refile for some time. This can have a damaging impact on Pennsylvanians in financial distress.

Although you may be able to refile for bankruptcy in Pennsylvania if your initial case was dismissed, the automatic stay preventing creditors from collecting on your debts may disappear. This can make you liable for debts almost immediately after a dismissed bankruptcy case in Pennsylvania, even if you have intentions to refile.

Filing for bankruptcy in Pennsylvania is complex. Debtors may feel discouraged and overwhelmed simply at the prospect. Instead of dealing with the stress alone, hire a lawyer. Your Chester County bankruptcy attorney can help you file the proper forms and organize your financial information so that your Chapter 7 or Chapter 13 bankruptcy is not denied in Pennsylvania.

Call Our Pennsylvania Attorneys for Help with Your Bankruptcy Case

If you plan to file for bankruptcy in Pennsylvania, our lawyers can help. For a free case evaluation with the Allentown bankruptcy attorneys at Young, Marr, Mallis & Deane, call today at (215) 701-6519.