When you file for bankruptcy, you give the Federal bankruptcy courts authorization to look at every aspect of your financial records, including bank accounts, credit accounts, and property you own. Once the courts are satisfied that everything is in order and your creditors have received adequate time to request payment, your bankruptcy will be discharged. When that happens, your debts will either be forgiven or you'll enter into repayment status, depending on which chapter you filed under. With chapter 13, you'll keep your property, but you'll be required to pay your creditors in affordable monthly payments. With chapter 7, your debts will be forgiven, but you'll liquidate your non-exempt property.

However, there are some cases where your bankruptcy won't be discharged. Instead, your case will be dismissed, which means you'll continue to be responsible for the payment of all your outstanding debts. Here are the reasons your bankruptcy case may be dismissed. Once you file, you should avoid these situations at all costs.

Refusing to Take Required Credit Classes

Under new bankruptcy laws, you're required to take two credit classes before your bankruptcy can be discharged. Those classes include a credit counseling course, which you're required to take at the start of your claim, and a financial management class, which you're required to take just prior to your bankruptcy being discharged. If you fail to take those classes and refuse to take them once you're given the final opportunity, your bankruptcy claim will be dismissed. To prevent that from happening, be sure to sign up for those classes as soon as possible and provide proof of satisfactory completion.

Fraudulent Activities

When you file for bankruptcy, you're required to submit proof of all assets you hold, including banking information, investment accounts, real property, and personal property. You're also required to hold on to all your property until your case can be settled. Attempting to give your property away, sell your property, or hide property from the bankruptcy trustee can be grounds to dismiss your case. To protect yourself, and prevent problems with your case, don't sell, giveaway, or hide your assets prior to filing for bankruptcy.

Failure to Follow Bankruptcy Orders

While your bankruptcy is proceeding through the court system, you may be required to follow certain court orders. Some of those orders may be to provide financial records, or to pay certain debts. If you fail to follow those court orders, the judge may deny your claim. If that happens, your debts will not be discharged.

Don't let your bankruptcy claim get dismissed. To make sure your bankruptcy is discharged properly, be sure to avoid the issues described above. To avoid potential problems, contact a bankruptcy law firm near you, such as Cowan & Brady Law Offices Of.