Many individuals who are considering filing for bankruptcy are worried that their bankruptcy case will not be allowed to go through or will be denied by the court. In fact, we receive the question “Can the Trustee deny my case?” very often. Filing for bankruptcy is not based on arbitrary things such as how far behind on your bills you are or if the trustee likes or dislikes you. It is based on your ability to file a specific type of bankruptcy, and if you are within the guidelines of the bankruptcy code. More often than not, your case will go through with no issues at all. If you hire an attorney and provide truthful answers to questions asked, you will likely have a case that goes through without a hitch.
While the court will not flat out deny your case, there are some instances where your trustee will file objections with the court regarding your case. In the large majority of Chapter 7 bankruptcy cases, this will not happen; however, if you are over-median income, your trustee can file something called a 707(b) objection in your case. A 707(b) objection or inquiry is filed when the trustee assigned to your case has questions about how the means test and/or income and expenses schedules were completed on your bankruptcy petition. Typically, the first step your trustee will take in this situation is to request documents from your attorney proving the circumstances reflected on your petition. If a child care or medical expense seems to be higher than the standard, your trustee may request documentation to prove this is an accurate portrayal. Once proof is provided, your trustee will withdraw their objection, and your case will move forward as planned. However, if you are unable to provide documentation that the trustee is requesting, or you show that you have excess funds monthly, your trustee may request that you convert your chapter 7 bankruptcy case to a chapter 13 case.
In a Chapter 13 case, your trustee will also file objections in your case; however, unlike a Chapter 7 case, an objection that is filed in a Chapter 13 case is much more common to see. In a Chapter 13, your trustee will file objections to the confirmation of your Chapter 13 plan. This could be for a number of reasons, including your trustee needing additional documents to review and adjustments needing to be made for how certain items are listed in your chapter 13 plan.
Receiving an objection in your case is not the same thing as your case being denied. More often than not, it just means that your trustee has additional questions they would like answered. Once the questions are cleared up, your case can move forward smoothly.
If you have questions about bankruptcy, contact your St. Louis Bankruptcy Attorney today!