Why would someone be denied chapter 7 bankrupcy??

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I know a couple who has abused the system running thier credit cards to the max all the while knowing they wouln't be able to make the payments. Now that their at the end of the line so to speak, they filed for chapter 7 bankrupcy. Will they get it? This infuriates me to no end!!! How can they get away with this??




  1. That would have been the reason I would have entered. Deliberately running up large bills just prior to filing is a red flag & could cause them to be denied since it showed reckless spending and with intent to defraud.

  2. They could be forced into Chapter 13 (payment plan) if they have the income.

  3. Well a trustee will review the petition if he feels you can afford to pay back then they will drag you into chapter 13 if they think you cant ur cleared! If they have a doubt they will request your credit card statements and see where you have spent the money.

  4. With the new laws in place and a lot of explaining to do, probably not!

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