Where is the checks and balances?

[signal]

I realize BK law doesn't need to make sense. For example the idea that a rich person can basically sell all their assets and put it into their house (homestead) at unlimited value in some states seems crazy.

What stops someone from running up there debt, as high as they can, max out all of their cards. Then wait 6 months. File BK. I mean the most they could stand to lose in a 7 is the assets and in a 13 they aren't going to be made to pay any more regardless correct? I mean you can only have so much disposable income.

And if the lookback is 6 months, then are any of these charges even an issue?

I sunk all my bonuses into my unsecured debt, my last several tax returns into my unsecured debt, I cashed in my vacation to give to my unsecured debt, and my wife in a panic gave every penny in her businesses savings to amex which has sealed the demise of her business.

Yes I understand I made these charges, and I owe them the money. I am just trying to understand how maybe my behavior can help me get a leg up since I was trying to be responsible and do the right thing, and next to me may be some guy who ran it to the max on all his cards, waited 6 months and filed and are we looked at equal? I mean from what I read, we are (if he waits 6 months). Yet he may actually have an easier time lifestyle wise since he has used all this max credit to prepare for his bk. I have effectively thrown money into a blackhole as if I end up filing anyways, all that money I paid in was moot.

help me understand, or maybe thats just the way it is.......

[OhioFiler]

We can't worry how the other guy got there. It's none of our concern. We all make choices we have to live with. What would the other guy not being able to file BK accomplish for you? His choices have no effect on your case.

Worrying about others is counterproductive.

No one ever said life was fair.

[DeadManCrawling]

You are right. The law is set up in some strange ways. Here in Florida, there have been some recent changes to the law regarding how long a person must reside here to get unlimited homestead protection.

Someone willing to plan ahead and prepare could certainly still abuse the exemption.

BK law is supposed to help the consumer, and does in many cases, but to maximize the benefit, someone has to be intimately familiar with the law system in BK. Often, the middle and lower economic classes are unfamiliar with asset protection planning. The BK system, in that aspect, favors the wealthy and ultra-wealthy. In other words, a mirror of the rest of the country. The little guy (and gal) are at a disadvantage from the start, unless they really learn the law.

[signal]

That is what I am seeing. I mean in a ch 13 you can choose to either have a 1400/mo car note and 600/mo "disposable income", or you can choose to have a 600/mo car note and 1400/mo disposable income. The system favors those with big houses, big autos, and other secured debt. And like you say, the more wealthy do more asset planning and structuring of things in case they should fail financially.

I just pray i can get a Ch7, I would give anything to start over.

[awayalways]

and then you have the disparity of significant (and I do mean significant) exemptions from state to state. homestead here in florida is great as DMC said but the rest of the exemptions stink. and if we were only smart enough to pre-plan about 5 years ago we would be sitting pretty today as the OP suggests is possible. But *sigh* we were like most here, being responsible to the last minute and hoping for a miracle.

[whipster1]

As I have always said, move to Texas.