Bankruptcy: what happens if you are denied?

If her husband makes good money, she isn't bankrupt. If she still has a nice car and a nice house, she isn't bankrupt. It's that simple.

She won't be allowed to file bankruptcy when she clearly has money available to her.

You can't just file bankruptcy to avoid paying the bills you racked up when you are still living a nice lifestyle. She needs to talk to a financial planner/credit counselor and figure out where to trim her budget so she can pay her bills.

She could maybe try to get into a debt reduction program. I have a friend who was having problems and went with an "attorney run debt reduction" program. Has debt a bit higher than you and will be debt free in 30 months. He said the Consumer Credit counseling companies are in cahoots with the credit card companies (and take 7-8 years to pay), which I heard long ago, and he didn't want bankruptcy, and said once you're paid off, you can rebuilt your credit quickly after. I tried to give advice to someone on this, thru email, and it wouldn't go thru. If you want, just search under the above and find a company or so and talk to them...then check out your options.

If she declared bankrupcy, her "nice car" will be repossessed to pay off her debt. Depending how bad it is, they may take her house or at the least, call in her mortgage.

What do I think will happen? Well if things are so bad that she's considering declaring bankrupcy but can't, I'm going to say that she is going to be perpetually stuck in debt for the rest of her life, living 1 paycheque away from the curb. People need to start living by their means, rather than chasing some fantasy life that your pay can't afford and putting it all on credit... because it comes back to bite you, with 21% more interest.

There are income limits for Chapter 7 (liquidation of debt) bankruptcies. That's probably why.