consumer debt

[happe1]

I have heard that having a large amount of consumer debt (credit cards, $100,000 to $150,000 ) and no other types of debt could be seen as an abuse of the bankruptcy system and grounds for the BK being denied. Is this true?
State: Florida

 

[JETX]

Yes, depending on the circumstances.

 

[happe1]

Could the BK be denied for chapter 7 and 13 or just 7? Thank you.

 

[JETX]

Doesn't matter what Chapter. If the trustee feels that the petitioner ran up credit bills with the anticipation of filing for bankruptcy, that could be determined to be bankruptcy fraud. And that is NOT something to take lightly.

 

[dorenephilpot]

However, high voluntarily contracted consumer debt raises fewer eyebrows if it accompanied by one of the big three reasons that people file for bankruptcy protection.

They are: 1. divorce. 2. major uninsured medical bills. 3. job loss/business failure.

The question you ask really is fact-sensitive.

Go talk to an attorney in your state. Many offer free initial consulations.

It would be worth it for your peace of mind....