Chapter 7 bankruptcy is a legal process that allows individuals to discharge specific debts and begin anew financially.
However, the court-appointed trustee supervising the bankruptcy proceedings in Missouri will determine whether or not to approve the discharge of debts. Here are some reasons why a trustee might deny an individual’s request for Chapter 7 bankruptcy in Missouri.
Lack of eligibility
To qualify for Chapter 7 bankruptcy, an individual must pass the means test, which is a calculation that takes into account income, expenses and other financial information. If an individual’s income exceeds a certain level, they may not be eligible for Chapter 7 bankruptcy. Additionally, if an individual has previously filed for bankruptcy, they may be ineligible for Chapter 7 bankruptcy for a specific period.
Dishonesty or fraud
A trustee may deny an individual’s request for Chapter 7 bankruptcy if they suspect dishonesty or fraud in the bankruptcy filings. For instance, if an individual fails to disclose all assets or income or transfers assets to someone else to avoid including them in their bankruptcy filing, the trustee may consider this fraud and deny the request.
Failure to comply with court requirements
If an individual fails to comply with the court’s requirements during the bankruptcy proceedings, a trustee may also deny their request for Chapter 7 bankruptcy. For example, if an individual fails to attend mandatory meetings or provide requested documentation, the trustee may determine that they are not taking the bankruptcy process seriously and deny their request.
Seeking advice from a qualified bankruptcy professional is crucial to understand the eligibility requirements and ensure compliance with all court requirements during the bankruptcy proceedings.