Who can’t file for Chapter 7 Bankruptcy

Chapter 7 Bankruptcy eliminates individual debts, which could be a perfect excuse for those who would want to avoid making payments to creditors.

However, the law has specific guidelines and requirements as to who can or can’t file for Chapter 7 Bankruptcy.

Under the law, a person can file for Chapter 7 Bankruptcy as long as he meets the requirements and criteria.

For this article, you will learn about the cases where a person is not eligible to file for Chapter 7 Bankruptcy.

The debtor has a high income.

A person who wants to file for Chapter 7 Bankruptcy must undergo a “means test” which will determine whether he qualifies for filing such a case.

The filer of the case must have an income which is equal to or lower than the median family income.

The debtor is capable of paying some debts.

The court will have to determine whether the debtor would still have money to pay some debts after monthly expenses including rent, food and utilities have been calculated. If the court sees that the filer can still pay some of his debts, his case will be rejected.

A debt has been previously discharged through bankruptcy.

If the filer was discharged of debt through Chapter 7 Bankruptcy within 8 years, he cannot file for another case of similar kind. Also, if he has filed for a previous bankruptcy 180 days prior to his new case filing and the case was dismissed, he cannot file for Chapter 7 Bankruptcy.

The debtor failed to meet credit counseling requirements.

If the debtor failed to attend the mandatory credit counseling, his case will be dismissed.

The filer defrauded his creditors.

If the debtor made steps that were proven to defraud creditors, the court will dismiss his case.

For more information contact Jeff Cancilla 714-702-5295.

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