Chapter 7 Bankruptcy Eligibility Requirements PDF Print E-mail
Written by Alan Alder   
Monday, 06 July 2009 14:41
There are barriers to filing for Chapter 7 bankruptcy protection and receiving the benefits of a financial fresh start and putting an end to harassing creditors, and wage garnishments. Requirements for filing a Chapter 7 bankruptcy include:
by AlanAlder


There are barriers to filing for Chapter 7 bankruptcy protection and receiving the benefits of a financial fresh start and putting an end to harassing creditors, and wage garnishments. Requirements for filing a Chapter 7 bankruptcy include:

- You must finish a credit briefing session in person, by phone, or on the internet from a court-approved counseling agency within the previous 180 days;

- The state in which you are filing must have been your place of residence for the previous 90 days. If you have not resided in the state for 90 days then you may file in the state where the majority of your assets have been located for the last 180 days or where your principal of business is located;

- You filed a bankruptcy that was dismissed within the last 180 days for (1) a failure to obey orders of the court or a failure to make an appearance before the court, or (2) requesting a voluntary dismissal after a creditor asked the Court for relief from the automatic stay;

- Not having filed a Chapter 7 within the last 8 years where a discharge was received;

- Not have received a discharge in a Chapter 13 filed within the last 6 years. This does not apply if you paid 70% or more to unsecured creditors in your Chapter 13 Plan;

- Average monthly income over the last 6 months is less than the median for your county OR the average monthly income over the last 6 months minus allowable expenses is not enough to pay one quarter of your debt over the next 5 years;

- Not be an insurance company, financial institution, nor a railroad.

The rules for who can and cannot file a Chapter 7 are found in the bankruptcy code. Even if you fail to meet one or more of the requirements, you may still be able to receive bankruptcy protection by filing under a different chapter, like Chapter 13.

DISCLAIMER: This article is provided as information only and is not to be taken as financial advice.

Alan Alder is a lawyer who has filed hundreds of bankruptcies in Nashville. For more information about filing Chapter 7 in Clarksville visit his Nashville bankruptcy website.