5 Reasons Your Bankruptcy Case Could Be Denied The debtor failed to attend credit counseling. The debtor attempted to defraud creditors or the bankruptcy court. A previous debt was discharged within the past eight years under Chapter 7. A previous debt was discharged within the past six years under Chapter 13.

How does filing Chapter 7 bankruptcy affect you?

The consequences of a Chapter 7 bankruptcy are significant: you will likely lose property, and the negative bankruptcy information will remain on your credit report for ten years after the filing date. Should you get into debt again, you won’t be able to file again for bankruptcy under this chapter for eight years.

When did Chapter 7 bankruptcy become a law?

The law passed in 2005 prohibits some filers with higher incomes from using Chapter 7 bankruptcy. Under the rules enacted in 2005, the first step in figuring out whether you can file for Chapter 7 bankruptcy is to measure your “current monthly income” against the median income for a household of your size in your state.

What was the change in the bankruptcy law in 2005?

Here are some of the most important changes in the 2005 bankruptcy law. Under pre-2005 bankruptcy rules, most filers could choose the type of bankruptcy best for them — and most chose Chapter 7 bankruptcy (liquidation) over Chapter 13 bankruptcy (repayment).

How to determine if you can file Chapter 7 bankruptcy?

Under the rules enacted in 2005, the first step in figuring out whether you can file for Chapter 7 bankruptcy is to measure your “current monthly income” against the median income for a household of your size in your state. If your income is less than or equal to the median, you can file for Chapter 7 bankruptcy.

What’s the name of the new bankruptcy law?

Referred to colloquially as the “New Bankruptcy Law”, the Act of Congress attempts to, among other things, make it more difficult for some consumers to file bankruptcy under Chapter 7; some of these consumers may instead utilize Chapter 13.