Obstacles of Bankruptcy - Two Increasingly Complicated Forms of Bankruptcy

Obstacles of Bankruptcy - Two Increasingly Complicated Forms of Bankruptcy """Bankruptcy is no longer an easy route out of debt for those who are struggling. Since the enactment of the new bankruptcy laws, there are numerous obstacles that must be overcome in order to apply for chapter 7 bankruptcy. If a debtor does not qualify for chapter 7 bankruptcy but still wishes to file, they will be required to use chapter 13. This article discusses a number of requirements that you will need to meet.

Means test:

In order to qualify for chapter 7, a debtor whose income is greater than the state's median income must pass this test. This test takes the individual's income into consideration. The system then deducts a certain amount of allowed expenses and determines whether the debtor has sufficient funds to repay his debts. If the answer is yes, then he will not qualify for chapter 7.

Bankruptcy discharge:

If the debtor has received a chapter 7 discharge within the past eight years or a chapter 13 discharge within the past six years, he is ineligible to petition for chapter 7 bankruptcy.

Dismissed Bankruptcy:

If the debtor previously filed for bankruptcy under chapter 7 or chapter 13 and the case was dismissed within the previous 180 days, he is ineligible to re-file.

Defraud creditors:

If the court believes the debtor is attempting to defraud creditors or conceal assets, it can dismiss the bankruptcy case. In this case, certain actions will be regarded as egregious offenses. Suppose a debtor attempted to conceal some of his assets by allocating them to a friend and relative. It falls under the category of asset concealment.""

" - https://www.affordablecebu.com/