Chapter 7 bankruptcy is a great tool for consumers who have gotten in trouble with debt either through a job loss or an unexpected illness. It lets these people get a fresh start free of the burden of unsustainable debt. But the bankruptcy court also is on the lookout for those who would abuse this process, taking out loans they never intended to pay back and instead plan to discharge in bankruptcy. A St. Louis Bankruptcy Lawyer will also be on the lookout for red flags that may get your bankruptcy thrown out due to abuses.
St. Louis Bankruptcy Lawyer on Making a Good Faith Effort
One common reason a creditor may challenge the Chapter 7 bankruptcy is because the consumer did not make a good faith effort to repay the debt. For instance, if you suddenly decide to max out your credit card, then file bankruptcy a week later, the creditor will attempt to prevent this debt from being discharged. This is especially true if the credit was spent on luxury items.
While there is no explicit rule about how many payments constitute “good faith” on the part of the creditor, it is typically between 70-90 days worth of payments. A St. Louis Bankruptcy Lawyer can discus any recent debt that may be challenged in bankruptcy court.
At The Westbrook Law Group, we will discus solutions to your particular debt problems. Our St. Louis Bankruptcy Lawyers will work to ensure the court accepts your bankruptcy, whether it is Chapter 7 or Chapter 13. We want to help people who have had a bad break get a fresh start, free of debt and free of stress. If you are tired of living with the constant pressure that unsustainable debt loads can bring, contact us today to learn how you can get a fresh start.