There are limits on the quantity of secured and unsecured debts that can be discharged in chapter 13 or chapter 7 bankruptcy. If the debtor exceeds the limits, he or she will not be eligible.
o If an individual's personal income is extremely high and he or she still wishes to file for Chapter 7 bankruptcy, there is a high probability that the individual will be denied this option. The applicant must earn less than the median income, or they can take the Means Test for a second opportunity to keep the bankruptcy option alive. In a Mean test, a case is dismissed if, after calculating income and expenses, the defendant has at least $167 per month available for repayment activity. You are permitted to proceed with the Chapter 13 repayment plan.
o Fraudulent Filing of Bankruptcy Appeal
If the court determines that a debtor has lied, the case will be dismissed; a Chapter 7 defaulter can immediately refile as a Chapter 13 debtor, and a Chapter 13 debtor can immediately refile as a Chapter 7 debtor.
o If you do not adhere to the repayment schedule
If a debtor is unable to pay according to the payment plan, the plan will be dismissed. When declaring Chapter 13 bankruptcy, the repayment plan must be carefully considered. Only 30% of all debtors successfully repay their debts.Before filing for bankruptcy, which can later be dismissed, it is crucial that you review the applicable laws.
" - https://www.affordablecebu.com/
