Treating bankruptcy seriously

A bankruptcy filing can be dismissed for a number of reasons, including if there is any evidence that the information filed within the request was not true. Florida residents should take the bankruptcy process seriously and be aware that certain behavior can bring the validity of their bankruptcy filing into question.

A similar recent case involves the conduct of an entertainer who, after declaring bankruptcy, began posting online pictures of himself posing with large amounts of cash. Upon being notified of the existence of the photos, a bankruptcy court judge questioned whether the entertainer had failed to divulge all of his assets. A response filed by the entertainer admitted that the money in the photos consisted of props. Although the court accepted the explanation, the episode does reflect the gravity of the bankruptcy process and the importance of how it should be treated.

There is no guarantee that a bankruptcy case will be completed, regardless of the fact that the bankruptcy filing was approved. Bankruptcy cases can be dismissed without prejudice, which allows the opportunity for a refiling in the future and ceases any collection attempts for debts. Procedural mistakes are often the reason for these types of dismissals, and these can include not filing the correct paperwork, missing a meeting with a creditor or not completing a credit counseling class.

However, if there is evidence that the bankruptcy process is intentionally being manipulated or that bankruptcy fraud is occurring, the case may be dismissed with prejudice. This type of ruling prevents a debtor from immediately refiling and permits creditors to pursue collections.

Bankruptcy is an important legal process that should be treated seriously. A bankruptcy lawyer can offer guidance regarding Chapter 13 as well as the proper procedure before and after the filing of bankruptcy.