12 Reasons Why People Can’t File A Chapter 7 Bankruptcy Petition
- Filed Chapter 7 within the last 8 years.
- Income is higher than expenses—totality of the circumstances test.
- Income is above the national average for the ‘means test’ and it can’t be rebutted.
- Assets aren’t exempt.
- Not enough debt to justify using bankruptcy or not enough dischargeable debts.
- Preference payments.
- Fraudulent conveyances.
- Psychological reasons—feeling of embarrassment, feeling defeated, loss of pride and self-respect.
- Religious and moral reasons—believes bankruptcy is immoral and dirty.
- Philosophical reasons—rugged individualism.
- Traumatized from childhood with parents filing for bankruptcy.
- Fearful of consequences of filing and can’t believe or trust anyone who says to the contrary. In denial.