If you make the decision to file bankruptcy, you should be aware that there are things that can make the bankruptcy fail or disqualify you from being able to file. It’s important to note these situations so that you can avoid them, if possible, and be able to plan for a successful bankruptcy. Our bankruptcy attorneys can help you develop a solid plan to bring your bankruptcy to a successful discharge.
High Income and Ability to Pay Debt
The bankruptcy courts grant a discharge to those who cannot meet their credit obligations. Usually, this is because they have a limited source of income with little to no chance for an increase in income for the foreseeable future. If you have an income that is more than sufficient to pay your debts without noticeably impacting your lifestyle, you are most likely not going to receive a discharge judgment. However, we can let you know if you have other options in the event that you do not meet the income requirements for filing bankruptcy.
Acquiring New and Recent Loans
When it comes to filing bankruptcy, the higher your debt, the more likely it is that you will be able to have your bankruptcy discharged. Some people take that to mean they should take out more loans right before filing so they can have as much cash on hand as possible when they file. The bankruptcy courts do not look favorably on these actions. In fact, this can result in charges of fraud since it looks like you took out a loan or loans with little or no intention of paying them back.
Not Including All Debts
You do not have to include every debt you have in your bankruptcy. However, the more accounts you include, the higher the overall amount of debt you are able to demonstrate. For instance, you may not want to include your house in the bankruptcy because you want to keep it and continue to live there. You may not want to file on your houseboat either, but since this item is more likely to be considered a luxury, the courts will not look favorably on omitting the debt from your bankruptcy. This scenario can vary, however. For instance, if your houseboat is the only place you have to live, it’s a completely different story.
It is best to consult with our bankruptcy attorneys and provide us with all information concerning your current debts so we can help you create a plan of action. We can provide you with personalized information on when you should file and what you should include in the bankruptcy. Read more about Chapter 7 bankruptcy in Florida here.
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