Credit Builders Inc.

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:

- Within the last 180 days you completed a credit counseling course on the internet, on the phone, or in person from a counseling agency approved by the Court;

- You must have lived in the state in which you are filing for the previous ninety days. If you have not resided in the state for the last ninety days you may file in the state in which you have resided, or where you business is located, or where the majority of your assets have been located for the previous 180 days;

- A previous bankruptcy has not been dismissed within the last 180 days for (1) voluntary dismissal after a creditor has filed for a Motion of Relief From Stay, or (2) failure to obey court orders or failure to appear before the court;

- 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;

- Your income over the last 6 months is below median for your county OR your average monthly income over 6 months after deducting for allowable expenses is not enough to pay 25% of your debt over the next 5 years;

- Not be a financial institution, a railroad, nor an insurance company;

The rules for who can and cannot file a Chapter 7 are found in the bankruptcy code. Even if you fail to meet one or more of the requirements, you may still be able to receive bankruptcy protection by filing under a different chapter, like Chapter 13.