What Disqualifies You From Filing Bankruptcy?

Most people can file bankruptcy. But certain prior filings, timing issues, and eligibility requirements can create bars. Here is the complete list of what might prevent you from filing -- and what you can do about it.

Quick answer: The most common disqualifiers are: prior discharge within the waiting period (8 years for Ch 7-to-7, 4 years for Ch 7-to-13, 2 years for Ch 13-to-13), income above the means test threshold (Ch 7 only), failure to complete credit counseling, case dismissed within 180 days under section 109(g), and debts exceeding $2.75M (Ch 13 only).

Prior Discharge Waiting Periods

The most common barrier to filing is a prior bankruptcy discharge. The waiting periods depend on the chapters of both the prior and new case:

Prior CaseNew CaseWaiting PeriodStatute
Chapter 7 dischargeChapter 78 years727(a)(8)
Chapter 13 dischargeChapter 76 years*727(a)(9)
Chapter 7 dischargeChapter 134 years1328(f)(1)
Chapter 13 dischargeChapter 132 years1328(f)(2)
Chapter 12 dischargeChapter 76 years*727(a)(9)

*The 6-year bar (Ch 13 to Ch 7) does not apply if you paid 100% of unsecured claims or at least 70% in good faith with best effort.

All waiting periods run from the filing date of the prior case, not the discharge date.

Check Your Eligibility -- Free 1328(f) Screener

The 180-Day Dismissal Bar (Section 109(g))

Under 11 U.S.C. section 109(g), you cannot file any bankruptcy case for 180 days if your prior case was dismissed for either of these reasons:

  • Willful failure to appear before the court or comply with court orders
  • Voluntary dismissal after a creditor filed a motion for relief from the automatic stay -- this prevents the "file and dismiss" game where debtors file repeatedly just to invoke the automatic stay

If your case was dismissed for other reasons (failure to make plan payments, failure to file documents on time), the 180-day bar may not apply, but section 362(c)(3) may limit your automatic stay to 30 days in the next case.

Means Test Failure (Chapter 7 Only)

If your household income is above the state median and you do not pass the full means test calculation, you are disqualified from Chapter 7. Your options:

  • File Chapter 13 instead: No means test for Chapter 13 eligibility
  • Wait for income to decrease: The means test uses a 6-month lookback, so a recent job loss may qualify you
  • Review expenses carefully: Many deductible expenses are overlooked -- mortgage, car payments, taxes, insurance, medical costs
  • Primarily business debts: If over 50% of your debt is business-related, the means test does not apply

See full details on Chapter 7 eligibility and income limits.

Credit Counseling Requirement

Under 11 U.S.C. section 109(h), you must complete a credit counseling course from a U.S. Trustee-approved agency within 180 days before filing. If you file without the certificate, the court will dismiss your case.

  • Courses are available online, by phone, or in person
  • Cost: typically $15-25
  • Duration: about 60-90 minutes
  • You must use an agency approved for your district (W.D. Mo. or D. Kan.)

Limited exceptions exist for emergencies (exigent circumstances) and when no approved agency is available, but these are rarely granted. See credit counseling requirements.

Debt Limits (Chapter 13 Only)

Chapter 13 has a combined debt limit of $2,750,000 in total noncontingent, liquidated secured and unsecured debts. If your debts exceed this, Chapter 13 is not available. Options:

  • Chapter 7: No debt limits (but must pass means test)
  • Chapter 11: No debt limits, available for individuals and businesses
  • Subchapter V (small business): Streamlined Chapter 11 for debts under $7.5 million

See Chapter 13 eligibility for details.

Fraud and Discharge Denial

Fraud does not prevent you from filing, but it can prevent you from receiving a discharge:

  • Section 727(a)(2): Concealing, destroying, or transferring property to defraud creditors within 1 year before filing
  • Section 727(a)(3): Concealing, destroying, or falsifying financial records
  • Section 727(a)(4): Making false oaths or claims in connection with the bankruptcy case
  • Section 727(a)(5): Failing to explain satisfactorily a loss of assets
  • Section 727(a)(6): Refusing to obey court orders or answer material questions
  • Section 727(a)(7): Committing any of the above acts in connection with an insider's bankruptcy case

These are serious allegations that must be raised by the trustee, a creditor, or the U.S. Trustee. If proven, your entire discharge is denied -- meaning no debts are eliminated.

No Regular Income (Chapter 13 Only)

Chapter 13 requires "regular income" -- income stable enough to fund a repayment plan. If you have no income at all, Chapter 13 is not available. However, "regular income" is defined broadly and includes wages, self-employment, pension, Social Security, disability, rental income, and regular support from family members. See Chapter 13 eligibility.

Summary: Can You File?

Potential BarrierChapter 7Chapter 13
Income too high (means test)Bars filingNo barrier
Prior Ch 7 discharge (8 years)Bars dischargeBars discharge (4 years)
Prior Ch 13 discharge (6/2 years)Bars dischargeBars discharge (2 years)
Dismissed within 180 days (109(g))Bars filingBars filing
No credit counselingCase dismissedCase dismissed
Debts over $2.75MNo barrierBars filing
No regular incomeNo barrierBars filing
FraudMay deny dischargeMay deny discharge
Not an individualMay file (some entities)Bars filing

Frequently Asked Questions

What disqualifies you from Chapter 7?

Failing the means test, prior Chapter 7 discharge within 8 years, prior Chapter 13 discharge within 6 years, dismissal within 180 days under section 109(g), no credit counseling, and fraud.

What disqualifies you from Chapter 13?

Debts over $2.75M, no regular income, not being an individual, prior Chapter 7 discharge within 4 years, prior Chapter 13 discharge within 2 years, no credit counseling, and dismissal within 180 days.

How long between bankruptcy filings?

Ch 7 to Ch 7: 8 years. Ch 13 to Ch 7: 6 years (exceptions). Ch 7 to Ch 13: 4 years. Ch 13 to Ch 13: 2 years. All measured from prior filing date. Check your timeline.

What is the 180-day dismissal bar?

Under section 109(g), you cannot file for 180 days if your prior case was dismissed for willful failure to comply with court orders or if you dismissed after a creditor sought stay relief.

Can I file without credit counseling?

No. You must complete credit counseling within 180 days before filing. Filing without it results in dismissal. Limited emergency exceptions exist but are rarely granted.

Can fraud prevent me from filing?

Fraud does not prevent filing, but can prevent discharge. Concealing assets, falsifying records, making false oaths, or failing to explain asset losses can result in denial of your entire discharge.

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