Are There Good Reasons Not to File a Chapter 7?

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Desire but Doubts in Whether to File a Chapter 7

A debtor recently posted on a bankruptcy forum website this question, “Are there any good reasons not to do a Chapter 7?”

The single debtor posting has been living month to month in paying living expenses the past 4 years, the house she bought 2 years ago is now underwater, her car is upside down in value, and she needs a $7,000 roof on the house that she cannot possibly save up to pay for under current economic conditions.

She says that she consulted with a couple of lawyers about filing a Chapter 7, and she is 99% convinced a Chapter 7 bankruptcy is for her, but she still has a few doubts. She feels “it would be easier to deal with a life after Chapter 7 with bad credit than keep living month to month and not being to make any headway, not being able to have any kind of savings or retirement plan, and needing to spend money on repairs that I do not and will not have in the future. I would like to get rid of my house, credit cards, vehicle payments and have a fresh start, and to me, that overrides the disadvantages.”

Filing Bankruptcy is Your Right and Personal Choice

Your right to file for bankruptcy protection is guaranteed under the Constitution of the United States. Any American facing bankruptcy has the right to file the bankruptcy of choice in which they are qualified to file.

Whether or not you exercise your right to file is a personal choice only you can ultimately make. No one can make that decision for you, but an informed decision usually always provides the best reasons for doing something. Because this debtor sought professional help from bankruptcy attorneys in trying to establish good reasons for filing a Chapter 7, she is making a more informed decision.

The debtor also is seeking out more information from her peers on the internet who may have experience in filing a Chapter 7. She does not give enough information in this particular post to receive much help, but at least she is seeking reasons to file or not to file a Chapter 7, more reasons that will help her make a good decision for herself.

Some Reasons You

May Not Want to File

From the information the debtor posted online, here are some reasons she may not want to yet file:

  1. The debtor is still going to have car and home expenses whether or not she gives up her current home and car.

  2. Repairs are still going to be a part of her lifestyle no matter where she lives or what she drives.

  3. The debtor does not have to live on credit whether or not a Chapter 7 is filed.

  4. There may be other choices in debt management that might allow her to keep her home and repair her roof.

  5. If the debtor files for a Chapter 7 now, and is not really in need, she will have to wait up to 8 years before she can file a bankruptcy again when she might be truly be in need to file.

Any time you feel there are enough reasons to file a Chapter 7, it is still good advice to get the help of a bankruptcy lawyer.

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