Who is eligible to file Chapter 7?

To qualify for relief under Chapter 7 bankruptcy of the Bankruptcy Code, the following applies:

  • The debtor may be an individual, a partnership, or a corporation or other business entity.
  • Subject to the Means Test, relief is available under Chapter 7 bankruptcy irrespective of the amount of the debts or whether the debtor is solvent or insolvent.
  • An individual cannot file under Chapter 7 bankruptcy or any other chapter, if during the preceding 180 days a prior bankruptcy petition was dismissed due to the debtor’s willful failure to appear before the court or comply with orders of the court, or the debtor voluntarily dismissed the previous case after creditors sought relief from the bankruptcy court to recover property upon which they hold liens.
  • Must complete credit counseling and obtain a certificate.
  • The debtor may not have received a discharge in a Chapter 7 bankruptcy in the previous eight years, or Chapter 13 bankruptcy in the previous four years.

Posted in: Chapter 7 Faq