There are certain things that can disqualify you from bankruptcy. Although this is not the case for most people, certain facts can prevent you from filing, prevent you from receiving a discharge, or make Chapter 7 unavailable. In Creek County, bankruptcy cases are filed in federal bankruptcy court, and the same federal bankruptcy rules apply throughout Oklahoma.
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A Recently Dismissed Bankruptcy Case
One common issue is a prior bankruptcy case dismissed within the last 180 days. You may be temporarily barred from filing if the prior case was dismissed because you willfully failed to appear in court, failed to obey court orders, or voluntarily dismissed the case after a creditor sought permission to recover secured property.
This does not always mean bankruptcy is impossible forever. It may mean timing and prior-case history must be reviewed before filing again.
Failing the Chapter 7 Means Test
The means test can prevent some people from filing Chapter 7. It reviews household income, household size, and allowed expenses to determine whether the debtor has enough disposable income to repay creditors.
Failing the means test does not usually disqualify you from all bankruptcy relief. It may mean Chapter 13 is the better option. Chapter 13 allows you to repay debts through a court-approved plan over time.
Prior Bankruptcy Discharge
A prior bankruptcy discharge can affect when you may receive another discharge. If you previously filed Chapter 7, Chapter 11, Chapter 12, or Chapter 13, you must review the timing rules before filing another case.
You may still be able to file, but you may not be eligible for a discharge if the new case is filed too soon. This is especially important if you are filing mainly to eliminate debt rather than stop foreclosure or reorganize payments.
Failure to Complete Credit Counseling
Individual bankruptcy filers generally must complete approved credit counseling before filing. If this step is missed, the case may be dismissed. After filing, debtors must also complete a debtor education course to receive a discharge.
Fraud, Hidden Assets, or False Statements
Bankruptcy requires honesty. Hiding assets, lying on schedules, transferring property to keep it away from creditors, destroying records, or making false statements can prevent discharge and create serious legal consequences.
The trustee can review bank statements, tax returns, deeds, vehicle titles, business records, lawsuits, and recent transfers. It is better to disclose a problem and address it legally than to hide it.
Debts Bankruptcy Does Not Eliminate
Some debts may not be discharged, even if you qualify for bankruptcy. These may include child support, alimony, certain taxes, student loans unless special hardship is proven, criminal restitution, and debts involving fraud or willful injury.
Talk to a Creek County Bankruptcy Attorney
The things that may disqualify you from bankruptcy in Creek County include recent dismissed cases, failing the Chapter 7 means test, filing too soon after a prior discharge, missing required counseling, or dishonest financial disclosures. Even then, another chapter or later filing may still be available. Before assuming you do not qualify, speak with an Oklahoma bankruptcy attorney. A lawyer can review your income, debts, prior cases, assets, and filing options. Our team at Creek County Attorneys can help you through the bankruptcy process. Call us at 918-209-3709 for a free and confidential consultation or ask a legal question here.
