Requirements to File Chapter 7 Bankruptcy

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;

- 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;

- A previous bankruptcy has not been dismissed within the last 180 days for (1) voluntary dismissal after a creditor has filed for a Motion of Relief From Stay, or (2) failure to obey court orders or failure to appear before the court;

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

- Either not have filed a Chapter 13 in the last 6 years where you received a discharge, or have received a discharge in a Chapter 13 but paid 70% or more to your unsecured creditors;

- 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 a financial institution, a railroad, nor an insurance company;

The requirements for who can and cannot file for Chapter 7 bankruptcy protection are found in the federal bankruptcy code. Failing to meet one or more of the requirements does not necessarily mean that you cannot receive bankruptcy protection, it may mean that you have to file a petition under another Chapter of the Code.