Chapter 7 bankruptcy can be a very appealing form of bankruptcy to file. It discharges a good portion of the filer’s debts completely, almost guaranteeing a fresh start and another chance at financial solvency. However, because this type of bankruptcy leaves some creditors unpaid and puts the burden of your debts onto others, there are limitations as to who can file for it. What factors may make you ineligible for Chapter 7 bankruptcy?
A few reasons that may disqualify a debtor from Chapter 7 filing are:
- The debtor committing fraud by reducing personal assets by damaging or destroying them, gifting them to friends or family or not being forthcoming about actual debts and income on applications for credit.
- The debtor did not attend credit counseling. You will be required to submit the certificate of completion upon filing your request for Chapter 7 bankruptcy.
- The debtor filed within 180 days prior to a new filing for bankruptcy and the bankruptcy request was dismissed due to fraud, a request for dismissal by the filer because an automatic stay was lifted, abuse by the debtor upon the court or the debtor violated a court order.
- The debtor had debts discharged through Chapter 13 bankruptcy within six years prior or Chapter 7 bankruptcy within eight years.
- If, after scrutinizing the debtor’s income, it is determined there remains enough disposable income to repay some of the debts, the filing may be dismissed in support of a more appropriate Chapter 13 filing.
- The debtor’s average income taken over the span of the six months prior to filing is higher than Florida’s approved median income.
If you feel that you are still eligible for Chapter 7 or if you now can rule out Chapter 7 and would like to explore your other debt relief options, a Florida bankruptcy attorney may prove a valuable resource in getting that fresh financial start you desire.