CREDIT
Some Reasons Not to File
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When Bankruptcy May Be Your Best Option
Bankruptcy is a powerful tool for those who are hopelessly in debt, says attorney Robin Leonard, author of several books on bankruptcy for NoLo Press in Berkeley, Calif. But here are some reasons you may not want to file for bankruptcy:
1.
You discharged your debts with a Chapter 7 filing within the past six years. You can file for Chapter 7 only once every six years, a period that runs from the date you filed.
2.
You have asked a friend or relative to co-sign a loan. If you file for bankruptcy, your co-signer will be stuck with the debt.
3.
You could repay your debts over three to five years. In this case, you might still want to consider filing for Chapter 13.
4.
You defrauded a creditor. The bankruptcy court will look carefully at recent expenditures. If there is evidence that you tried to hide assets, traveled extensively for pleasure or lied about your income or debts, the bankruptcy judge will not be happy with you, Leonard says.
5.
You recently spent a pile of money on luxury items. Last-minute luxury purchases are typically not discharged in bankruptcy, Leonard says.
Finally, you might not want to file for Chapter 7 if you have little that creditors can get from you. "Sometimes people get talked into filing for bankruptcy when they really have no assets," Detweiler says. "So if you have $5,000 in debt and no assets people can come after, it may make sense just to ignore the creditors." 
Should I file for bankruptcy protection?
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