Chapter 7 Bankruptcy – Who is eligible to file?
To qualify for relief under chapter 7 of the Bankruptcy Code, the debtor may be an individual, a partnership, a corporation, or other business entity. Relief is available under chapter 7 regardless of the amount of the debtor’s debts or whether the debtor is solvent or insolvent as long as he passes the means test.
An individual cannot file under chapter 7 or any other chapter of the Code if, during the preceding 180 days, a prior bankruptcy petition was dismissed due to the debtor’s willful failure to appear before the court or comply with orders of the court, or the debtor voluntarily dismissed the previous case after creditors sought relief from the bankruptcy court to recover property upon which they hold liens. Also, no individual may be a debtor under chapter 7 or any chapter of the Bankruptcy Code unless he has, within 180 days before filing, received credit counseling from an approved credit counseling agency either in an individual or group setting. If a debt management plan is developed during required credit counseling, it must be filed with the court.
More about Chapter 7 Bankruptcy
Chapter 13 Bankruptcy – Who is eligible to file?
Any individual, even if self-employed or operating an unincorporated business, is eligible for chapter 13 relief as long as the individual’s unsecured debts are less than $336,900 and his secured debts are less than $1,010,650. These amounts are adjusted periodically to reflect changes in the consumer price index. A corporation or partnership may not be a chapter 13 debtor.
An individual cannot file under chapter 13 or any other chapter if, during the preceding 180 days, a prior bankruptcy petition was dismissed due to the debtor’s willful failure to appear before the court or comply with orders of the court or was voluntarily dismissed after creditors sought relief from the bankruptcy court to recover property upon which they hold liens. Also, no individual may be a debtor under chapter 13 or any chapter of the Bankruptcy Code unless he or she has, within 180 days before filing, received credit counseling from an approved credit counseling agency either in an individual or group setting. If a debt management plan is developed during such counseling, it must be filed with the court.
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