In other postings here on the NY Bankruptcy Blog, I’ve explained some of the conditions necessary to file a bankruptcy case under Chapter 7 of our federal Bankruptcy Code.

Since Chapter 7 ultimately nullifies or “discharges” the claims of creditors, the courts are very selective in allowing debtors to file this type of bankruptcy case. Here, I’ve compiled 10 important criteria the courts use to determine if a person is eligible for Chapter 7 discharge of debts.

Any person who is qualified to file and maintain a Chapter 7 case is eligible for a Chapter 7 discharge EXCEPT the following:

1. A person who has been granted a discharge in a Chapter 7 case that was filed within the last 8 years.
2. A person who has been granted a discharge in a Chapter 13 case that was filed within the last 6 years, unless 70% or more of the debtor’s unsecured claims were paid off in the Chapter 13 case.
3. A person who files and obtains court approval of a written waiver of discharge in the Chapter 7 case.
4. A person who conceals, transfers, or destroys his or her property with the intent to defraud his or her creditors or the trustee in the Chapter 7 case.
5. A person who conceals, destroys, or falsifies records of his or her financial condition or business transactions.
6. A person who makes false statements or claims in the Chapter 7 case, or who withholds recorded information from the trustee.
7. A person who files to satisfactorily explain any loss or deficiency of his or her assets.
8. A person who refuses to answer questions or obey orders of the bankruptcy court, either in his or her bankruptcy case or in the bankruptcy case of a relative, business associate, or corporation with which he or she is associated.
9. A person who, after filing the case, fails to complete an instructional course on personal financial management.
10. A person who has been convicted of bankruptcy fraud or who owes a debt arising from a securities law violation.

If, for any of the above conditions, you are not eligible for a Chapter 7 discharge, you should not file a Chapter 7 case in the first place. As an experienced New York and Pennsylvania bankruptcy attorney, I can explain the other options open to you - before you go on a wild goose chase with a type of filing that will only be dismissed.

Thanks for reading and let me know if you have any questions,
Matt
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Matt Hughson

New York Bankruptcy Lawyer

Ziff Law Firm, LLP
303 William St., Elmira, NY 14901
Tel: (607) 733-8866
Fax: (607) 732-6062
Toll Free: 1-800-943-3529
Email: mhughson@zifflaw.com
Web: http://www.zifflaw.com

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