To qualify for Chapter 7 bankruptcy, you must meet two main criteria:
- Time Requirements
- You cannot have received a discharge from a previous Chapter 7 bankruptcy within the last 8 years
- You cannot have received a discharge from a previous Chapter 13 bankruptcy within the last 6 years
- The Means Test Introduced in 2005 with the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCA), the Means Test determines eligibility based on financial status:
- Your income is compared to the median income in your geographic region for a household of the same size
- Adjustments may be made for significant medical costs, child education expenses, and similar circumstances
- To qualify, your adjusted income must fall below the median income for comparable households in your area
