I am filing Bankruptcy "7" with about $300,000 in unsecured debt

[storesstores]

There is a "S" Corp involved also. The "S" corp has very little value in it.

VERY little recent debt.

Will $300,000 be scrutinized big time?

[SinkingFast]

Any time there's in excess of $100K in unsecured debt, and very little to no Assets, without a life altering event, then the Ch 7 BK is gonna be scrutinized.

$100K+ in debt is a trigger for the UST.

Very little to no Assets with $100K+ in debt is a bigger trigger for the UST.

BUT, if you have a life altering event,........ Job loss, disability, medical, death of a spouse, some other major catastrophe beyond your control,............ Then the UST considers Totality of Circumstances.

[storesstores]

Luckily most of my debt is over 1 year old...some of it is 3 years old...

Will this help?

[SinkingFast]

Oh yeah!! When the debt was incurred definitely comes into play.

Truely, aged debt does help.

People who run up huge amounts in a short period of time just prior to filing are scrutinized even more heavily.

Abusers take the luxury vacations and buy lavish things like furs, and fancy cars, and jewelry shortly before filing. And that's what the UST looks for.

Older debt is a totally different case.

[JRScott]

Although the debt is old be prepared for greater scrutiny and it is possible they'll audit your bankruptcy. Just means they'll be asking more questions and looking deeper. So long as you are fully honest with them from the get go you should be okay.

[storesstores]

Oh yeah!! When the debt was incurred definitely comes into play.

Truely, aged debt does help.

People who run up huge amounts in a short period of time just prior to filing are scrutinized even more heavily.

Abusers take the luxury vacations and buy lavish things like furs, and fancy cars, and jewelry shortly before filing. And that's what the UST looks for.

Older debt is a totally different case.

What is considered old debt?