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What factors could put your bankruptcy in jeopardy?

Bankruptcy is a legal process that must move forward in a certain way in Oregon. Any missteps or mistakes could result in the denial or dismissal of your Chapter 7 case. If this occurs, you would still be responsible for your debts.

According to the U.S. Courts, some requirements must occur before you can even file your case. For example, you must meet the income conditions for Chapter 7 if you mainly have consumer debts and not business debts. Above a specific amount, the court would apply a means test to determine if you actually could pay your bills, or if you are eligible for Chapter 13 bankruptcy. If either of these are true, it would be an abuse of Chapter 7 to allow your debts to be discharged.

Your case may not proceed if you do not get credit counseling 180 days or fewer before you file. If there is not an approved agency to provide your financial management counseling, or there is an emergency situation, your trustee may waive this responsibility.

The court may refuse to discharge your case if it becomes evident that you are guilty of any of the following:

  •          Committed perjury
  •          Did not obey a bankruptcy court order
  •          Gave away, hid or destroyed assets that should have become part of the estate
  •          Did not provide an accurate and complete account of your finances
  •          Failed to give a satisfactory explanation of any lost assets

Although these matters should all be taken seriously, Chapter 7 bankruptcies are discharged in more than 99 percent of the cases filed. This information is general in nature, and should not be interpreted as legal advice.

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Eugene, OR 97401

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