When Not to File for Bankruptcy - 10 Examples

Filing for bankruptcy is actually a very serious step and, unless properly approached, may lead to unfortunate consequences. Bankruptcy is filed in a U.S Bankruptcy Court - a Court that actually has so much power that it can actually stop the U.S. Supreme Court from acting - let alone virtually almost all Court in the entire United States  and in theory possibly any Court in the world.

When a bankruptcy is filed when inappropriate, under the wrong chapter, or prepared improperly - you most likely will be in a worse situation than you are now.

That being said - bankruptcy would be used if it is appropriate, beneficial, filed under the correct chapter and the schedules prepared properly.
Examples1. Disclosure - failure to disclose  all property. Failure to properly disclose property is bankruptcy crime. Recently a person in South Florida was charged with a bankruptcy crime for failing to disclose a Rolex watch.

2.  Debt Not-Dischargeable - 95% of the debt is non-dischargeable student loans.

3. No Debt - if the collection of  all of the debt is barred by the statute of limitations.

4. Corporations  -  in most cases chapter 7 in not needed for a small business, you may wind-down and close a corporation under state law without filing for bankruptcy.

5. Just Paid Today - just got paid today and need to pay mortgage

6.  $8,000 Life Savings in the Bank - unless its exempt, such as being traceable to social security, but even then, you need to prove it

7. Tax Refund - its December and there will be a large IRS refund on April 15th.

8.  Income Taxes - income taxes will be dischargable if the case is filed in a few more months

9. Transfers - your just paid back a family member, friend, or anyone a large loan

10. Legal Advice - from an uncles who is a lawyer in New Jersey

Jordan E. Bublick - Miami Bankruptcy Lawyer - Kendall & Aventura Offices - (305) 891-4055 - www.bublicklaw.com