What can go Wrong in my Chapter 7 Case? Over 95% of Chapter 7 cases result in “no action” by the Chapter 7 trustee and by your creditors, so the odds are very good that we will not have any problems with your case.Every so often we will file a case where an issue does arise. Most often the problems we see involve pre-filing borrowing or use of credit by our clients. If you incur debt within 6 months to 1 year prior to filing and there is no “reasonable expectation of repayment” then your creditor(s) may ask the judge to rule that some or all of the debt owed to that creditor be deemed non-dischargeable and survive your bankruptcy. If such an objection occurs in your case, we can either negotiate a compromise or litigate the issue before the judge.
Less often we see objections by the trustee arising from pre-bankruptcy transfers of property, or issues related to the value of property. Here, too, we can negotiate a settlement or litigate.
Finally, in very rare circumstances, the trustee or a creditor may object on the grounds that important and relevant information was not disclosed, such as an interest in real estate or jewelry, or an interest in a bank account or other asset. Needless to say, our law firm will not knowingly mislead the court and we encourage our clients to make full and completely disclosures to us so we can offer the best possible advice.