When Bankruptcy is Not a Good Idea
Sometimes Bankruptcy is not a good idea. Bankruptcy might not be for you if you fit one or more of the following situations. The law is complicated, so be sure to call and talk to us about your situation.
In rare cases, a client may own more property than can be exempted. In such a case the client may have to surrender (or give up) this non-exempt property to the trustee. This may be the case if you own a very expense car that is paid for; you own real estate (i.e., land and/or buildings) other than your home; you own an expensive home that is paid for; or you have lots of money in the bank.
People whose income is too high might not be allowed to file chapter 7. If your income is above the state median income, you must pass the means test in order to get a chapter 7 discharge. Fortunately, most bankruptcy filers are not subject to the means test because their income is below the state median income. And, even if your income exceeds the state median income and you fail the means test, you probably can file a chapter 13 bankruptcy.
Payments to Insiders
If you made payments to totaling $600 or more over the last year on debts owed to a family member, relative or friend, the trustee may require that family member, relative or friend to give the money back. The trustee is concerned that you might favor these people or your other creditors.
If you transferred valuable property to a third party within four years without receiving fair value in return, the trustee may be able to recover that property from the recipient.
This website does not create an attorney-client relationship. The information on this website does not constitute legal advice. You are urged to obtain the advice of an experienced bankruptcy attorney regarding your personal situation.