The bankruptcy court wants to make sure that a person is filing in good faith. This means that a person is using the bankruptcy court as intended after making a sincere effort to repay their debt. If a debtor is using the court to abuse the system, it could result in the matter being thrown out entirely. One way this could happen is if someone files solely to frustrate creditors. A bankruptcy attorney can review your situation to make sure you are filing in good faith instead of simply trying to abuse the system.
Some people take advantage of the automatic stay to frustrate creditors, knowing that they won’t be approved for Chapter 7. If someone has too much disposable income, they likely won’t pass the means test and will need to file Chapter 13. But some people just want the automatic stay and don’t have any intention of actually going through with the bankruptcy. In this case, the matter would be thrown out entirely and the collection activities would proceed against you would commence.
Essentially, it would be like you had never filed for bankruptcy and all matters would pick up right where they left off. For example, a creditor wouldn’t need another court order to begin garnishing wages again. The garnishment would begin again immediately. Or if you are behind on a loan payment for a vehicle, you could face repossession.
A bankruptcy attorney will make sure that you are filing in good faith and have met the requirements necessary for a Chapter 7 discharge or Chapter 13 reorganization. This way, you can get your debt under control and get your life back on track,
At Westbrook Law Group, we have helped many clients across St. Charles, Troy, and St. Louis with their serious debt problems. We understand how difficult it can be to face overwhelming debt and we will work to find a solution. For a free consultation to discuss your debt problems, contact Westbrook Law Group today for a free consultation.