There’s no doubt that bankruptcy has almost been given a new lease of life over recent years. Once upon a time it had a certain stigma attached, yet now a lot of people appreciate that it can be used for the greater good.
Unfortunately, there are occasions where barriers will appear and your chapter 7 bankruptcy attorney will simply refuse to progress with your application. This isn’t through spite or anything else under such lines, but more the requirements that this form of bankruptcy demands.
Following on from the above, let’s take a look at four occasions where you won’t be able to apply for a chapter 7 bankruptcy – and you may instead have to explore other options.
Occasion #1 – You have too much income
As bizarre as it might sound, even though you might be in the midst of some serious financial difficulties, your personal income can come into the equation when you are applying for a chapter 7 bankruptcy.
A test exists which says that your average monthly income must be in line with the median income for the state. When we talk about this amount of income, we’re referring to the likes of your salary, interest, dividends, child support and even state disability insurance payments. A couple of elements that are not covered in your income are payments from your Social Security retirement benefits and tax refunds.
Occasion #2 – You have recent experience with bankruptcies
In a lot of cases, experience is everything. When it comes to bankruptcy, such rules are thrown straight out of the window.
The laws state that anyone who has discharged debt from a chapter 7 bankruptcy from the past eight years is immediately disqualified from applying.
Not only that, but you can’t apply if you have previous with a chapter 13 bankruptcy either. The major difference here is that the history only dates back six years, meaning that it’s not quite as strict as the chapter 7 requirements.
Occasion #3 – Your experience relates to failed bankruptcy cases
It’s not just successful bankruptcy cases which fall under this category though. Even if you have filed a chapter 7 or chapter 13 case that hasn’t been successful, you still might not be able to apply for a new one.
If this rejection has occurred within the last 180 days, and is because you violated a court order or the application was fraudulent, applying for a new chapter 7 is immediately out of the question.
Occasion #4 – You haven’t participated in credit counselling
The laws state that anyone poised to file for bankruptcy must complete credit counselling with a non-profit agency, in a bid to aid their plight. Suffice to say, if you haven’t taken part in such counselling within 180 days of applying for bankruptcy, you are not permitted to file for it.
The only occasions you will be exempt from this is through mental incapacity, or if you are on duty for the military.