Declaring Bankruptcy Under Chapter 7 New Laws

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Anyone can declare Chapter 7 bankruptcy, but maintaining the case and proving that discharge is deserved is an entirely different legal matter. The new laws which regulate qualification and the requirements for discharge remain unsettled in application. For many debtors, filing Chapter 7 is a first choice, and if later determined to be unqualified, a motion to convert to another Chapter may prevent discharge and allow the case to proceed upon the second choice. In one regard, the new laws are expected to flood the courts with unnecessary or unsupported filings, that later result in conversion to another Chapter. Debtors will take their shot at discharge, and settle for options available.