What are the eligibility requirements for filing bankruptcy?

Filing for bankruptcy is a significant decision that comes with specific eligibility requirements. The primary factors that determine eligibility typically depend on the type of bankruptcy being filed—Chapter 7 or Chapter 13 are the most common options for individuals. For Chapter 7 bankruptcy, individuals must pass a means test. This test compares the individual's current monthly income against the median income for their state. If the individual's income is below the median, they generally qualify for Chapter 7. If it is above, additional calculations may be necessary to determine eligibility. For Chapter 13 bankruptcy, individuals must have a regular income and their unsecured debts must be under a certain threshold, which is updated periodically. This option is often chosen by those who wish to create a repayment plan over three to five years. It is also important to note that individuals must not have filed for bankruptcy and had it discharged within a specific timeframe, which varies based on the chapter filed. For the most accurate and detailed information regarding specific eligibility criteria, individuals are encouraged to consult the current web page for the most up-to-date guidelines or seek professional legal advice.