Requirements to File Chapter 7 Bankruptcy PDF Print E-mail
Written by Alan Alder   
Thursday, 02 July 2009 14:36
Chapter 7 bankruptcy can provide for a financial fresh start to those who use its power to rid themselves of creditors harassment and headaches - but not everyone is eligible to file for Chapter 7 bankruptcy protection. The following requirements must be met in order to file a Chapter 7 bankruptcy:
by AlanAlder


Chapter 7 bankruptcy can provide for a financial fresh start to those who use its power to rid themselves of creditors harassment and headaches - but not everyone is eligible to file for Chapter 7 bankruptcy protection. The following requirements must be met in order to file a Chapter 7 bankruptcy:

- You must complete a a credit counseling session by phone, internet, or in person from an approved counseling agency within the previous 6 months;

- You must have lived in the state in which you are filing for the previous ninety days. If you have not resided in the state for the last ninety days you may file in the state in which you have resided, or where you business is located, or where the majority of your assets have been located for the previous 180 days;

- You have not had a previous bankruptcy dismissed within the last 180 days for (1) failure to appear before the court of failure to obey court orders, or (2) voluntary dismissal after a creditor requested relief from the stay;

- Not having a discharge in a Chapter 7 bankruptcy which was filed within the last 8 years;

- 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 an attorney who has filed hundreds of bankruptcies in Nashville. For more information about filing Chapter 7 in Lebanon visit his Nashville bankruptcy website.