Bankruptcy

Who can?t file for bankruptcy?

By David Leibowitz, Illinois and Wisconsin Bankruptcy

Not everyone can file for a bankruptcy case. And not every type of business can file for a bankruptcy case either.

Who can’t file for bankruptcy? Here are some examples:

• Insurance companies
• Banks of any sort, foreign or domestic
• Trusts which are not “business trusts”
• Municipalities which are not permitted to do so under the laws of their states
• Estates

There are special sorts of bankruptcy cases available for:

• Railroads
• Securities firms
• Family farmers and fishermen

Even if you are the kind of person who might file a bankruptcy, you still have to meet eligibility requirements.

For example ?you have to have taken credit counseling before you file your case. ?And you can’t have had a discharge in chapter 7 within 8 years if you are filing a case under chapter 7. You can’t have had a discharge within 4 years if you want to get a new discharge in chapter 13. If you made significant payments in a confirmed chapter 13 case that you took to discharge, you might be able to get a new discharge in chapter 7 within 6 years.

So who you are, what you have done before and what you are trying to do now is very important if you are planning a new bankruptcy case.

Give your lawyer your complete history. ?It’s vital to know this in order to make smart and accurate decisions.

Lakelaw helps people in Illinois and Wisconsin file bankruptcy cases. ?Call today at 1 866 LAKELAW (525-5329) for accurate and personalized bankruptcy information and advice.

Full post as published by Bankruptcy Law Network on January 24, 2010 (boomark / email).