What persons are eligible to file under chapter 7?
Any person who resides in, does business in, or has property in the United States may file under chapter 7, except a person who has been involved in another bankruptcy case that was dismissed within the last 180 days on certain grounds. Top • What persons should not file under Chapter 7? A person who is not eligible for chapter 7 discharge should not file under chapter 7. A person who has substantial debts that are not dischargeable under chapter 7 should not file under chapter 7. It may not be wise for a person with current income sufficient to repay a substantial portion of his or her debts within a reasonable period to file under chapter 7, because the court may dismiss the case as constituting an abuse of chapter 7, or the court may dismiss the case as not passing the means test. Top • What is the mean’s test? The mean’s test is a complicated formula devised by the Bankruptcy Code to assess the debtor’s ability to pay their unsecured creditors and prevent abuse.
