Legal Question in Bankruptcy in Arkansas

Acquiring more debt during bankruptcy

My kids have filed for Chapter 7 bankruptcy. They have not gone to court yet but have stopped paying their debts several months ago. Just recently they purchased a new vehicle. Not sure how they did that with their credit, but they did. My questions is how does the judge decide whether to approve a Chapter 7 or force people into a Chapter 13. It seems to me that people, including my kids, should not be able to file for Chapter 7 and still be able to rack up new debt because they are not paying for their old debt.

Their income is over $70,000 per year.


Asked on 1/13/04, 7:28 pm

1 Answer from Attorneys
Harvey Harris Harris Law Firm

Re: Acquiring more debt during bankruptcy

The judge will look at when the debts occurred, how much, how much they are making, etc. to determine if they can file a bankruptcy. There are a number of factors. But if they can get credit after BR, that is up to the creditors.

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Answered on 1/13/04, 8:01 pm


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