Requirements to File Chapter 7 Bankruptcy
Filing Chapter 7 bankruptcy can provide you with a fresh start and end a lot of hassles and headaches, but there are some barriers to filing a Chapter 7 bankruptcy. In order to file a Chapter 7 Bankruptcy you must meet all of the following requirements:
- 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;
- The state in which you are filing must have been your place of residence for the previous 90 days. If you have not resided in the state for 90 days then you may file in the state where the majority of your assets have been located for the last 180 days or where your principal of business is located;
- You filed a bankruptcy that was dismissed within the last 180 days for (1) a failure to obey orders of the court or a failure to make an appearance before the court, or (2) requesting a voluntary dismissal after a creditor asked the Court for relief from the automatic stay;
- Not having filed a Chapter 7 within the last 8 years where a discharge was received;
- Not have received a discharge in a Chapter 13 filed within the last 6 years. This does not apply if you paid 70% or more to unsecured creditors in your Chapter 13 Plan;
- 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.
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