Who can file Bankruptcy ?

Who Is Eligible to File for Bankruptcy?

Pretty much anyone can file bankruptcy and will qualify for either Chapter 7 or Chapter 13. However, there are restrictions for certain types of bankruptcy, so not everyone will qualify for a particular chapter. 

Some of the basic qualifications to file for bankruptcy include:

  • You must not have filed for bankruptcy recently, as there are waiting limits in between bankruptcy filings that vary depending on what chapter you are filing.
  • You must not have had a bankruptcy case dismissed in the last 180 days.
  • You must not be filing for bankruptcy to defraud creditors.

Whether or not bankruptcy is right for you at this time should be discussed with a bankruptcy attorney. Sometimes an individual may want to wait to file for certain reasons, or find that bankruptcy may not be the right solution for their debts. Your lawyer can review your eligibility and recommend a bankruptcy type that will fit your situation. 

Types of Bankruptcy Chapters

  • Chapter 7 bankruptcy is generally for individuals and married couples with modest income and property; and also for failed businesses, and business entities.
  • Chapter 13 bankruptcy is a solid choice for those who earn wages, as well as for sole proprietor businesses, looking to reorganize and keep some property, while breaking free partially, if not entirely, from the general unsecured debt of credit cards, personal loans, and other deficiencies.  It is also a great solution to resolve (aka "catch up" on) back income tax issues, and domestic support obligations.
  • Chapter 12 bankruptcy is reserved specifically for fisherman and farmers to reorganize, and is very similar to Chapter 13.
  • Chapter 11 bankruptcy is the business-entity reorganization; reserved for those businesses which are making money, just not enough money to pay all of their debt obligations.
  • Chapter 9 bankruptcy is reserved for municipalities (e.g. cities, such as the 2013 bankruptcy by Detroit, MI).

There is a reasonable option for everyone, though the caveat can be the well-reasoned-solution usually requires a trained eye to help determine which path may be correct for you.

Interested in Bankruptcy? Call for a Free Consultation

It's worth the time of a free consultation to figure out which may be most appropriate, if any, for you. Give us a call and set up that appointment to help you determine what type of bankruptcy can help resolve your debt issues.

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