{"id":857,"date":"2018-04-12T14:36:06","date_gmt":"2018-04-12T19:36:06","guid":{"rendered":"http:\/\/www.mankatobankruptcy.com\/blog\/?p=857"},"modified":"2018-03-30T14:54:00","modified_gmt":"2018-03-30T19:54:00","slug":"bad-faith-cases-filing-for-bankruptcy-new-ulm-mn","status":"publish","type":"post","link":"https:\/\/www.mankatobankruptcy.com\/blog\/bad-faith-cases-filing-for-bankruptcy-new-ulm-mn\/","title":{"rendered":"Understanding Bad Faith Cases When Filing for Bankruptcy in New Ulm, MN"},"content":{"rendered":"

If you are considering filing for bankruptcy, there are a number of ways you can prepare your financial situation before you file a bankruptcy petition that can help your case and bring about the best results for you. Many of these preparation techniques are acceptable methods for improving the possible outcome of your bankruptcy case\u2014for example, choosing a certain time to file<\/a> or avoiding certain financial obligations<\/a>. However, there are instances when certain actions<\/a> done before filing for bankruptcy or during a bankruptcy case can result in the dismissal of your case on the grounds of \u201cbad faith.\u201d Behm Law Group, Ltd. offers legal advice and assistance to help prevent a potential bad faith bankruptcy case when you’re filing for bankruptcy in New Ulm, MN.<\/p>\n

While there are legitimate means of preparing for filing for bankruptcy or altering your finances to your advantage before you file a bankruptcy case, some such techniques could be considered bankruptcy \u201cred flags\u201d and prompt your bankruptcy trustee to determine that your case has been filed in bad faith. When you file for Chapter 7 or Chapter 13 bankruptcy, you must meet the \u201cgood faith\u201d requirement<\/a> in order to proceed. If there are aspects of your case that suggest you may be trying to take advantage of the bankruptcy system, your bankruptcy trustee or even one of your creditors could view your case as having been filed in bad faith and could ask the bankruptcy court to dismiss your case.<\/p>\n

Examples of common actions or circumstances that could be construed as bad faith include:<\/p>\n

    \n
  1. The filer hid certain assets, like keeping cash in a coffee jar or in a safe in one\u2019s home, and did not disclose the cash in one\u2019s bankruptcy petition.<\/li>\n
  2. The filer has little to no cash flow and is not registered as being unemployed with the government (this could alert a trustee to think that there is hidden income somewhere – the trustee could conclude that you are working for cash only and not disclosing it).<\/li>\n
  3. The filer had a job change during the bankruptcy period or recently prior to filing for bankruptcy and did not reveal an income increase to the trustee.<\/li>\n
  4. The filer made one or more large luxury purchases prior to filing for bankruptcy (vacation expenses, electronics, and jewelry are common examples).<\/li>\n<\/ol>\n

    Another common occurrence that may lead to a dismissal for bad faith is an attempted conversion from a Chapter 13 case to a Chapter 7 case.<\/p>\n

    Chapter 7 Conversion When Filing for Bankruptcy
    \n<\/strong><\/h3>\n

    If a filer is in a Chapter 13 repayment plan, one may attempt to convert that case to a Chapter 7 case if one can no longer pay the monthly Chapter 13 plan payments. This can occur if the filer had a job change, experienced a temporary period where one was unemployed, or incurred unexpected large expenses. However, if the filer begins to convert a case to Chapter 7 and one\u2019s situation improves during that time (for example, one gets a better paying job, or a family member gives one a large sum of money through inheritance or otherwise), one\u2019s case could be dismissed for bad faith.\u00a0 In short, it would be seen that one would be inappropriately trying to convert to a chapter 7 case \u2013 essentially indicating that one does not have the financial ability to make any payments to one\u2019s creditors \u2013 from a chapter 13 case.\u00a0 Given the receipt of a large sum of money from a relative or given a higher paying job, the trustee and the bankruptcy court would conclude that one would have the ability to continue making payments to one\u2019s creditors and should, therefore, be required to stay in a chapter 13 case.<\/p>\n

    There are other examples of why your case may be dismissed for bad faith, and you can learn about all the additional circumstances that may lead to bad faith in the American Bankruptcy Institute Journal<\/a>.<\/p>\n

    Find out more about filing for bankruptcy in New Ulm, MN with the help of Behm Law Group, Ltd. and contact us today at (507) 387-7200.<\/p>\n","protected":false},"excerpt":{"rendered":"

    If you are considering filing for bankruptcy, there are a number of ways you can prepare your financial situation before you file a bankruptcy petition that can help your case and bring about the best results for you. Many of these preparation techniques are acceptable methods for improving the possible outcome of your bankruptcy case\u2014for […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[37,31,3,43,29,34],"tags":[],"aioseo_notices":[],"yoast_head":"\nUnderstanding Bad Faith Cases When Filing for Bankruptcy in New Ulm, MN - Behm Law Group, Bankruptcy Attorneys<\/title>\n<meta name=\"description\" content=\"Filing for bankruptcy is complex and any misstep can lead to your case being dismissed in "bad faith." Learn more about how we can help you avoid mistakes!\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.mankatobankruptcy.com\/blog\/bad-faith-cases-filing-for-bankruptcy-new-ulm-mn\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Understanding Bad Faith Cases When Filing for Bankruptcy in New Ulm, MN - Behm Law Group, Bankruptcy Attorneys\" \/>\n<meta property=\"og:description\" content=\"Filing for bankruptcy is complex and any misstep can lead to your case being dismissed in "bad faith." 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