Chapter 7 bankruptcy allows people to erase their debt. But since Chapter 7 bankruptcy allows you to erase your debt, there are some restrictions. In order to file for bankruptcy, you may have to meet some requirements.

Who Is Disqualified From Filing Chapter 7 Bankruptcy?

There are some scenarios where you can’t file for bankruptcy. For instance, you can’t file for Chapter 7 bankruptcy if:

1. You make too much money. If you earn more than a certain amount, you won’t be able to file for Chapter 7 bankruptcy; however, in this case you can still file for bankruptcy through Chapter 13.
2. You defrauded creditors. You can’t file for bankruptcy if you did things to defraud creditors. This includes hiding money, abusing credit, or not meaning to ever pay back your debts.
3. You recently filed for bankruptcy. If you filed for bankruptcy recently, you won’t be able to file for Chapter 7 bankruptcy again, at least for a period of time.
4. You had a bankruptcy dismissed six months ago or sooner. If you recently filed for Chapter 7 or Chapter 13 bankruptcy, but that bankruptcy proceeding was dismissed in the preceding six months, you can’t file for bankruptcy again.

Eligibility for Chapter 7 Bankruptcy

If you meet the requirements above, there are some things that you have to do if you want to file for bankruptcy. For instance:

1. You must complete pre-bankruptcy credit counseling. If you want to file Chapter 7 bankruptcy, you must complete pre-bankruptcy credit counseling within six months of filing for bankruptcy.
2. You have to pass the means test. The means test compares your income with others’ to see if you qualify for bankruptcy.