Do I Qualify for Chapter 7 Bankruptcy?

What Is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is often referred to as "liquidation bankruptcy". It allows individuals to eliminate most types of unsecured debt, including:

• Credit card debt

• Medical bills

• Personal loans

• Certain utility bills and payday loans

If you qualify, Chapter 7 can stop wage garnishments, creditor harassment, and lawsuits — fast.

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How Do I Qualify for Chapter 7 Bankruptcy?

To qualify for Chapter 7, you must meet specific eligibility requirements set by the U.S. Bankruptcy Code. Here's what you need to know:

1. Pass the Chapter 7 Means Test

The means test determines if your income is low enough to qualify for Chapter 7.

• If your household income is below your state’s median income, you automatically qualify.

  • ​Roughly $65,000 for single filer and $80,000 for two-person household​

• If your income is above the median, the test deducts certain expenses (like housing, food, and transportation) to calculate your "disposable income."

If you don’t have enough disposable income to repay your debts, you may still qualify.

 2. You Must Not Have Filed Chapter 7 Recently

You cannot file Chapter 7 if you’ve:

• Received a Chapter 7 discharge within the last 8 years

• Received a Chapter 13 discharge within the last 6 years (in most cases)

 3. You Must Complete Credit Counseling

To qualify, you must:

• Complete a credit counseling course from an approved agency

• Take the course within 180 days before filing

This step is mandatory under bankruptcy law.

 4. You Must Be Honest About Your Finances

Chapter 7 is for honest debtors who truly cannot repay their debts. If you:

• Hide assets

• Transfer property to friends or family to avoid losing it

• Provide false information on your bankruptcy petition

…you may be denied a discharge.

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What If I Don’t Qualify for Chapter 7?

If you don't qualify for Chapter 7, you still have options:

• Chapter 13 bankruptcy – Allows you to reorganize debt into a repayment plan over 3–5 years.

• Debt settlement or negotiation – May work if you have income but want to avoid court.

• Non-bankruptcy credit counseling – For those who are struggling but not behind.

An experienced bankruptcy attorney can help you determine the best solution.

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Common Questions About Chapter 7 Eligibility

 Can I file Chapter 7 if I'm unemployed?

Yes. In fact, many Chapter 7 filers are unemployed or recently lost income. It may actually increase your chances of passing the means test.

 Can I qualify for Chapter 7 if I own a home?

Yes, but it depends on your home equity and state exemption laws. In many cases, you can keep your home if your equity is below the allowed exemption limit.

 Can married couples file jointly?

Yes, spouses can file together or separately. Filing jointly may be more efficient if you share most debts.

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Take the First Step: Find Out If You Qualify for Free

At [Your Law Firm Name], we help individuals and families throughout [City/State] determine whether Chapter 7 is right for them. We’ll:

• Review your income and debt

• Analyze your means test results

• Explain your legal options clearly

• Help you make a confident, informed decision

Call Us Now at 813-296-2968

 Or Schedule a Free Consultation Online »​

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Final Thoughts

Chapter 7 bankruptcy can provide powerful relief — but you must meet the eligibility requirements. The best way to know for sure? Talk to a trusted bankruptcy attorney.

We're here to help you navigate your options with dignity, clarity, and compassion.

Serving Clients in Tampa, St. Petersburg, and Across Florida.
Helping you wipe the slate clean and start fresh.

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Learn more about which debts can be discharged in Chapter 7 Bankruptcy.