Who Can File?

• Individuals, partnerships, limited liability companies and corporations are all allowed to file Chapter 7 bankruptcy, assuming they meet the eligibility requirements.
  
  

Eligibility

• Only certain people are eligible for Chapter 7 bankruptcy. Specifically, you are eligible to file Chapter 7 bankruptcy if your income falls below your state's median income. If you are above the median, you must satisfy the "means test."
  
  

Means Test

• The means test is complicated, but in essence, if you earn less than $10,950 per month, you are probably eligible for Chapter 7. If you earn more than $10,950 per month, you must calculate your various types of debts and apply a fairly complex analysis to see if you can still qualify. You will probably need the help of a bankruptcy attorney to perform this calculation.
  
  

Not Eligible

• If you fail the means test, you are not eligible for Chapter 7 and must instead file for Chapter 13 bankruptcy. Chapter 13 is reorganization or debt adjustment, rather than liquidation.
  
  

Judicial Approval

• When you file for Chapter 7 you will have to present the bankruptcy judge with a bankruptcy plan which outlines what your debts are, what your property is, and what will happen to all of your debts and property. The judge must approve the plan before you can finalize your bankruptcy.