A Chapter 7 bankruptcy gives you a second chance to set your financial affairs in order and obtain relief from overwhelming debt. However, to qualify for Chapter 7 bankruptcy discharge, you must meet certain requirements.
The requirements are set to help ensure only deserving individuals who genuinely cannot afford to repay their debts are granted the opportunity for a fresh start through Chapter 7 bankruptcy.
Am I eligible for Chapter 7 bankruptcy?
To be considered for a Chapter 7 discharge, you may need to fulfill the following requirements:
- Pass the means test: Your income must be below the median income for your state or demonstrate that your disposable income is insufficient to repay your debts.
- Mandatory credit counseling: You must take a credit counseling course from any approved agency within six months before applying for bankruptcy.
- No recent bankruptcy discharges: You must not have received a successful Chapter 7 discharge within eight years or a Chapter 13 discharge within six years.
- Honest disclosure: Provide complete and accurate information about your assets, debts, income and expenses in your bankruptcy petition and related documents.
- Attend the meeting of creditors: Participate in a session with your creditors and the bankruptcy trustee to discuss your financial situation.
- Follow court requirements: Adhere to all court orders and requirements throughout the bankruptcy process.
- Have not committed bankruptcy fraud: Avoid engaging in any fraudulent activities related to your bankruptcy filing, including hiding assets or providing false information.
Am I guaranteed a Chapter 7 discharge?
Even after meeting all the requirements, your eligibility for a Chapter 7 discharge is not guaranteed. The court will review your case thoroughly to ensure compliance with bankruptcy laws and assess whether granting you a discharge is appropriate.
As such, consider seeking legal guidance to better understand the Chapter 7 bankruptcy process and help ensure that you fulfill all requirements accurately and effectively present your case to the court.