There are many people who abuse filing bankruptcy, but you canít let a few ruin it for the many. There are people all the time saying why they didnít file bankruptcy sooner. One faces such situations in life when any banks wonít agree to work with them and tired of tiring all other options are compelled to file bankruptcy. And they are right, as filing bankruptcy is not really the end of life. But make sure before filing bankruptcy you know about the negatives and positives. But there are people who canít file bankruptcy. Here are some of them-
1. If you with a strong salary and with enough money is looking to file bankruptcy, it seems as though you are just trying to get out of paying your bills. Before filing bankruptcy you need to go through the ďmeans testĒ. This method will calculate how much income is left, after deducting your expenses to repay your debts. Not passing the test will not allow you to file chapter 7 bankruptcy.
2. If you have filed Chapter 7 bankruptcy in the last 7 years or a Chapter 13 in the last 6 years, you are not permitted to file bankruptcy again.
3. Your case of bankruptcy may be dismissed, if the court finds that you are trying to defraud creditors or have lied about your income. Or if you are proved engaging in any fake and deceitful activity then you may also be prosecuted for fraud.
4. You may not file bankruptcy if your debt type is mostly non-dischargeable.
5. If you had previously recline on a loan application or ran up a substantial amount of debt in the last few months.
6. You cannot file bankruptcy, if for any reason your previous bankruptcy was dismissed in the last 180 days.
7. There are certain businesses like the insurance companies, banks and estates that cannot ever file bankruptcy.
The debtor and his family must take some important steps before filing Bankruptcy. Excessive debts loads lead one to file bankruptcy before the court at an ease and without any effort.
Bankruptcy law is a federal legal process which helps people who can no longer pay the debts they owe and gets a fresh start by liquidating assets to pay their debts or by creating a repayment plan.
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Bankruptcy can occur to the debtors at any time and may have a serious effect if not careful. Being in a state of bankruptcy can have a devastating effect to a person’s whole life both personal and professional. Therefore in whatever way one must try to avoid it. For detail please contact National Asset Management.
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