Are you considering filing for bankruptcy, but are unsure if you qualify? You might be concerned that you do not have enough debt or you make too much money to qualify. The good news is that there are very few things that disqualify you from filing for bankruptcy. While consulting a Bridgeport bankruptcy lawyer is the best way to know for sure, there are some criteria that could make you ineligible. Here is a list of three things that could disqualify you from bankruptcy. Chances are if none of these apply to you, you are eligible to file for bankruptcy. You might not be qualified to file for bankruptcy if:
- You have enough money to repay your debts. This might seem like an obvious statement, but you might be surprised how the law determines if you have enough money. Essentially, the trustee compares your income with the median income for a family of your size in the state in which you reside. If you make more money than this, you may not be eligible to file for chapter 7 bankruptcy. The good news is that you could still be qualified to file for chapter 13 bankruptcy, which is also known as repayment bankruptcy. As the name implies, in chapter 13 bankruptcy, you actually repay your debts.
- You have previously filed for bankruptcy. For most people, bankruptcy is a once in a lifetime event. However, there are rare situations in which people find themselves needing to consider bankruptcy for a second time. If this applies to you, you might not be eligible for bankruptcy. According to the law, if you have filed for either chapter 7 bankruptcy in the past eight years or chapter 13 bankruptcy in the past six years, you are not eligible to file for bankruptcy again.
- You are being dishonest. Bankruptcy is reserved for those who genuinely made mistakes and now find themselves in a situation where they cannot repay their creditors. It is not designed for people who are trying to cheat the system. During the bankruptcy process, the trustee looks for people who are hiding assets. This can include lying about your income on a credit card application or hiding money from a business partner. It can also include selling expensive items to friends and relatives at a discount. Once you’ve decided to file for bankruptcy, spending lavishly on luxury goods 90 days prior to filing will be considered fraudulent. Generally luxury goods are considered anything over $800. If there is a discrepancy, a judge will be the final arbiter.
There are very few things that disqualify someone from filing for bankruptcy. If you are not sure if you qualify, it can help to talk to bankruptcy lawyers. Bankruptcy lawyers are familiar with all the requirements and exceptions within bankruptcy law. The Law Offices of Ronald I. Chorches even offer free consultations for those considering filing for bankruptcy. Sometimes the best solution is just to get more information.