Top Reasons Why Your Chapter 7 Bankruptcy Case Could be Denied

Are you running a business in Baltimore, Maryland? But do you suddenly need to liquidate your assets and repay your creditors to resolve your financial issues and file for a bankruptcy case? If so, make sure to hire a qualified Baltimore bankruptcy lawyer.

The rejection of a Chapter 7 bankruptcy case is very unusual, but there are grounds why a case like this can be denied. Many denials are due to a lack of attention to detail on the attorney’s part, errors made on petitions, and fraud. So you must hire an impeccable lawyer with good experience and an understanding of what is needed by the courts and local trustees. If your case happens to be denied, listed below are some reasons as to why.

 Attempt to defraud

Your bankruptcy discharge could be denied if you intend to hinder, delay, or defraud your creditor. You transfer, remove, destroy, mangle, or conceal a property within one year before filing for bankruptcy or any time after the date of filing.

It is a rule that forbids a debtor from giving away assets on the eve of bankruptcy. However, whether the court will find a specific fraudulent “intent” necessary for a denial of discharge or not is a highly fact-specific inquiry. Thus, you must disclose all your transfers or changes in a property to your bankruptcy attorney before or after the bankruptcy filing. Because if you aren’t honest, there will be a significant risk that the court may deny you your discharge.

Concealing or destroying information

If you conceal, destroy, mutilate, falsify, or fail to keep information regarding your financial condition, your bankruptcy can also be denied. It involves destroying records that could lead the trustee to the property you haven’t disclosed or simply not being able to back up declarations about your finances contained in your bankruptcy schedules.

Refusal to comply with the court order

Refusal to obey a lawful order of the court could lead to your bankruptcy case being denied. Once that happens, you will continue to keep getting those harassing creditor phone calls.

Loss of assets

This is when you cannot adequately explain an asset loss or insufficiency in assets.  Note that most debtors keep their properties under a Chapter 7 bankruptcy, so your assets will be protected.


Making a false statement regarding your case can cause your bankruptcy case to be discharged. When you file for bankruptcy, you speak under penalty of perjury that everything contained in the filing is true and accurate. If later it is revealed that exclusion was made, the trustee or your creditor can challenge your discharge. Therefore, you must be entirely truthful with your Baltimore bankruptcy attorney and the court.

Therefore, make sure to hire a competent bankruptcy lawyer in Baltimore, Maryland if you’re unsure about what to do. When it comes to bankruptcy, Attorney Richard Hackerman can help you with that. So call us today or browse through our website for more information.

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