Do I Qualify For Bankruptcy?

Bankruptcy can be a fresh start when debt feels overwhelming. If you’re asking, “Do I qualify for bankruptcy?” you’ve come to the right place. 

Below, you’ll find clear, step‑by‑step guidance on eligibility for both Chapter 7 and Chapter 13, plus a simple bankruptcy eligibility checklist to see if you meet the requirements. 

You can also check your eligibility to file for bankruptcy with the easy-to-use means test calculator provided in this article.

Schedule your free consultation today

Why Do People File for Bankruptcy?

Can I file bankruptcy now? Many people ask this question when debts pile up. Common reasons why people file for bankruptcy include:

• Job loss or Income Reduction leaving you unable to pay mortgage or car loans
  
• Medical bills from unexpected illness or injury
  
• Divorce or separation changing household income dramatically
  

If any of these hit home, it’s natural to ask, “Am I eligible for bankruptcy?” Let’s look at the core bankruptcy qualification requirements.

Bankruptcy Qualification Requirements

Before choosing Chapter 7 or Chapter 13, make sure you tick these universal boxes:

1. Credit counseling was completed within 180 days before filing.
   
2. No bankruptcy dismissed for non‑compliance in the past 180 days.
   
3. Filed all required federal and state tax returns (especially for Chapter 13).
   
4. No disqualifying prior discharges (see waiting periods below).
   

Meeting these basic rules is the first step to answer “Do I meet bankruptcy requirements?”

How to Qualify for Chapter 7 Bankruptcy

Qualifying for Chapter 7 bankruptcy hinges on your income versus your state’s median.

1. Compare your income
   • Calculate your Current Monthly Income (gross income over the last six months, annualized).
     
   • Check your state’s median income for your household size.
     
   • If your income is below that median, you pass automatically.
     
2. Use a means test calculator
   • If you earn more than the median, deduct allowed living expenses to find your “disposable income.”
     
   • Try out this free bankruptcy means test calculator for an instant result.
     
3. Observe waiting periods
   • No Chapter 7 discharge if you had one in the past 8 years.
     
   • No Chapter 13 discharge if you had one in the past 6 years.
     
4. Focus on consumer debts
   • Chapter 7 is designed primarily for personal debts (credit cards, medical bills).
     
   • Business debts often follow different rules.
     

Meeting these income limits for bankruptcy filing and passing the means test is key to Chapter 7 eligibility.

Chapter 13 Eligibility Criteria

If you have a reliable income and want to keep certain assets (like your home), Chapter 13 eligibility criteria may fit:

• Regular income from wages, self‑employment, pension, or benefits.
  
• Debt limits (subject to change; check current figures):
  
  • Unsecured debts (e.g., credit cards): under $465,275.
    
  • Secured debts (e.g., mortgage, car loans): under $1,395,875
    
• Proof of tax returns for the past four years.
  
• Ability to fund a 3–5 year repayment plan while covering living expenses.
  

If you meet these rules, you can reorganize debts instead of wiping them out.

Bankruptcy Eligibility Checklist

Use this quick list to see where you stand:

✔️ Completed credit counseling within 180 days

✔️ No dismissed bankruptcy in the last 180 days

✔️ Income below state median OR passed the means test

✔️ Total debts within Chapter 13 limits (if filing Chapter 13)

✔️ Filed required tax returns for the past 4 years

✔️ Primarily consumer debts for Chapter 7

Chapter 7 Eligibility in Glendale, Arizona

For Glendale, Arizona, the U.S. Trustee Program sets median incomes that guide Chapter 7 eligibility. As of April 2023 (subject to annual update):

To see if you qualify under Arizona income limits for bankruptcy filing, compare your annualized income to these numbers. Remember to check the latest figures before you file.

Bankruptcy Eligibility Consultation

Ready to move forward? A bankruptcy eligibility consultation with Gaudiosi Law can clarify your options and next steps. We’ll:

• Review your income and debts against Chapter 7 and Chapter 13 rules
  
• Walk you through our bankruptcy eligibility checklist
  
• Help you decide whether you’re eligible for filing bankruptcy
  

Schedule your free consultation today and get personalized guidance.

Frequently Asked Questions

Q: How do I qualify for bankruptcy?
A: You qualify by meeting credit counseling, income, debt, and prior‑filing rules. Use our checklist above and see which chapter fits you best.

Q: What counts as income for eligibility?
A: Wages, tips, self‑employment earnings, pension, Social Security, and other regular receipts all factor into your Current Monthly Income.

Q: Which expenses can I deduct in the means test?
A: The court uses IRS‑standard allowances for housing, transportation, and living expenses—not your exact bills. Our bankruptcy means test calculator handles the math.

Q: Can I file if I have business debt?
A: Chapter 7 focuses on consumer debts. If most of your debt is business‑related, different rules apply—let’s talk about your specific case.

Q: How long after dismissal can I refile?
A: You must wait 180 days after a dismissal for non‑compliance before refiling any bankruptcy case.

Bankruptcy can be a lifeline when you need it most. If you’re still wondering, “am I eligible for bankruptcy?” or “do I meet bankruptcy requirements,” contact Gaudiosi Law for a free consultation. We’re here to help you take the next step toward financial peace of mind.