Sometimes you can be denied bankruptcy. It happens quite often in the state of Texas. Why? You can be denied for many reasons. You might make too much money to file a certain form, or owe too much to file Chapter 13. You may break the rules of the bankruptcy. You may even make some mistakes prior to filing bankruptcy – such as spending a lot of money – and then are denied a filing. There are many more, but let’s focus on a few to understand the most common reasons for being denied a Texas bankruptcy.
Make Too Much
As of 2010, if you make more than the median income for Texas residents, you may be denied a Chapter 7 bankruptcy filing. Chapter 7 bankruptcy allows you to discharge common debts like credit card, medical, and other unsecured debts. The numbers from an individual up to a family of four: $37,676, $54,288, $55,534, $64,420. So as an individual, if you make more than $37,676, you would not be eligible to file and would be denied if you tried. There are some varying points on this system. If you recently lost your job, your income will likely go down considerably, so if you waited long enough you may be able to still file. Otherwise you would have to file Chapter 13, if eligible.
Owe Too Much
If you are an individual with an income greater than your main expenses, you should be eligible for Chapter 13. However, you cannot have unsecured debts more than $336,900 and secured debts exceeding $1,010,650. So if you owed $2,000,000 – of course a lot – you would not be able to file. If you make that much money, and owe that much money, you may not be able to file any bankruptcy.
Some of the next points may seem minor, but technically you can be denied a bankruptcy if you make these mistakes. If you fail to do credit counseling prior to filing, a requirement, you can be denied. If you lie on filing documents, you can be denied. If you have property, you must list it, or you may be denied. If you file, you will have a meeting of creditors, a requirement if you want to file. For Chapter 7 bankruptcy, you must pay a $299 filing fee in order to be eligible, otherwise you will be denied. For Chapter 13 bankruptcy, you must pay a filing fee of $274.
Avoid These Mistakes
If you want to avoid these mistakes, the best thing you can do is study bankruptcy law, consult with experts, and hire an experienced Texas bankruptcy lawyer. A lawyer can help ensure your bankruptcy goes through without any problems.