Bankruptcy offenses are illegal and may result in criminal, civil (if you caused an injury) and administrative (if you conceal property you own) consequences.
1. Filing a bankruptcy case after your debts have been discharged
You must wait eight years after your debts have been discharged to file any new bankruptcy petition. However, if you previously filed under Chapter 7, you may file for Chapter 13, but it must be two years after the previous case.
2. Filing without a valid reason
In any case of bankruptcy, you must justify the filing by showing ” justification for filing ” as well as ” deficiencies in coming up with a workable solution to your debts and ” continued inability to satisfy your debts”. In addition, you must provide viable evidence that you took some action to relieve debts and still can’t do so fully. For example, if you continue to borrow heavily or keep borrowing, you may still be unable to pay back your debts. Bankruptcy offenses include writing off a debt as its not due or changing one’s monthly expenditure without having available funds to do so.
3. Amount of debts
Six months’ worth of income is required in most types of bankruptcy petition. If your income falls below the median income for families in your state, you may not be eligible for Chapter 7. However, Chapter 13 bankruptcy is designed for people who cannot afford full loan repayments and thus can’t make full loan repayments.
4. Restrictions on interest charges and charges
Bankruptcy offenses include committing fraud in a bankruptcy claim or failing to disclose all of one’s interests when filing a bankruptcy petition. Moreover, people who attempt to discharge a loan by claiming that a loan does not exist, and transfer assets to friends, relatives, or dependents, while trying to get out of repayment on that loan are also considered bankruptcy offenses.
5. Discharge of a debt
A debt is discharged when a debtor acquires a discharge of it. Debtors may discharge tax debts, debts incurred for alimony and damages incurred for support or for a crime arising from driving under the influence, as well as mortgage debt and home equity loan debt.
How to file for bankruptcy
Bankruptcy filing must by law be properly documented. Furthermore, the petition must:
– Is in writing- Is signed by the debtor- Is under oath- Is filed at the bricks and mortar courtwhen bankruptcy is filed- Is closed on the last day of the month following the filing, and
– Is filed at the United States bankruptcy court,
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) clarifies that debtors must go to court to file bankruptcy and also determines that credit reporting agencies are obliged to supply credit bureaus with information concerning a bankruptcy.
Other complicating factors are that filers must present original tax returns or transcripts for all tax years for at least 5 years, submit tax returns and transcripts for tax years in which the tax return for the debtor was filed by another person or entity, and present original credit card statements and credit card account statements obtained from credit bureaus. The debtor also needs to have credit counselors employed by the court to ensure that they are in compliance with compliance requirements.
Credit Card Debt Bankruptcy
Debt is not something new. Many of us have heard stories of a father spending the inheritance on a luxurious vacation or a young mom using her credit cards because she had just received her latest paychecks. We all know someone who is in debt, or about to become so. In times of need, there are steps you can take to manage your debts and avoid bankruptcy.
1. Discuss debt with your spouse or significant other. A lot of people do not realize that the decision to file bankruptcy is not solely a financial one. In most cases, it is a combination of financial and personal challenges which creates the pressure for a bankruptcy filing. By discussing your current financial picture with your spouse or significant other, you will both be able to learn more about your financial situations and possible solutions.
2. Get professional help. Most individuals do not recognize the need for such professional assistance. There are accredited bankruptcy attorneys, certified public accountants and financial counselors who can provide a great deal of assistance in the field of bankruptcy. By allowing a professional to manage your bankruptcy case, you will be alleviating pressure and delaying the inevitable so that you can focus on building a strong financial future.
3. Control your spending. Many individuals who are in debt started getting in trouble when they began to spend beyond their means and continued to do so even after receiving financial assistance from their creditors. It is important for you to change your lifestyle in order to ensure that you do not spend in excess of your means when you receive your next paycheck.
4. Set goals and prioritize. In order to get out of debt, it is important that you know where you are as well as where you are going. You have to figure out how much you owe, how much money you have in your bank account, and what bills you must pay off. By taking this step to track and prioritize your goals, you will be able to find a way to proceed financially and reduce the stress that comes along with all of the bills you still owe yet do not pay off.
5. Bankruptcy does not have to be the only solution. The vast majority of those who file for bankruptcy do not do so out of need. It is important that you have ways to manage your money and control your spending if you want to avoid filing bankruptcy. You simply need to keep track of what you spend and make sure that you do not exceed your means. You should also speak with your financial counselor or advisor about creating a realistic yet attainable budget.
6. Savings accounts. Many individuals who are in debt often find this hard. Why do you need a savings account when you have a lot of debt? The answer is because you get around debt by creating multiple payment options. Many attorneys, financial planners and bankruptcy attorneys recommend that you maintain several different bank accounts. You can deposit checks and make small monthly payments into each account. This will allow you to pay off bills and credit card balances without spending too much money each month. In addition, it will ensure that you do not negatively impact your credit report by spending money which cannot be verified.
Summary. Free yourself from debt with the right financial advice and a step by step process to manage your finances and pay off your debts. This will help you to stop hurting your financial relationships, improve your credit score and avoid damage to your credit history.