If you learn that you are unable to file for Chapter 7, this does not mean the same holds true for Chapter 13. In fact, most people who find that Chapter 7 bankruptcy is not in the cards immediately begin to learn more about Chapter 13 and what it has to offer.
Here are the three reasons why you may not be in position to file for Chapter 7 bankruptcy:
- You earn enough money to repay your debts. There are clear rules in place in regards to your income. If you earn too much money, the court will make it impossible for you to file for Chapter 7 bankruptcy. You will then be forced to look into Chapter 13, deciding if this is something you want to consider.
- You have received a Chapter 7 bankruptcy discharge within the past eight years or filed for Chapter 13 within the past six years. If you fit into either category, you will have to wait until you file once again.
As frustrating as this may be, there is nothing you can do about this rule. It is in place to ensure that people do not continually abuse the system.
- It has been proven that you defrauded your creditors. If a bankruptcy court believes you have defrauded or cheated creditors in any way, it has the right to throw out your case.
There are certain activities that will throw up a red flag, such as hiding assets from creditors or running up a large credit card bill in advance of filing.
Are you worried that you are not in position to file for Chapter 7 bankruptcy? Are you concerned that this will make your situation even worse?
With so many laws in place and questions that need answered, it is best to consult with a bankruptcy attorney as soon as possible. We have helped many people decide for or against Chapter 7 bankruptcy. If nothing else, we can review your situation and let you know once and for all if you qualify to file for this type of bankruptcy.
To learn more, please download our free chapter 7 bankruptcy in Philadelphia report here.