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Am I eligible for Chapter 7 bankruptcy in Massachusetts?

Some of the facts that some Massachusetts residents look over when considering bankruptcy as an option for financial difficulties are eligibility requirements. The process can be more technical and time-consuming in Massachusetts because of minimum requirements and processes required for filing. Chapter 7 bankruptcies typically cancel a large portion of debt, while allowing individuals to have a fresh start. But, what are the eligibility requirements for Chapter 7 bankruptcy?

According to information from USCourts.gov, only individuals, a partnership, a corporation or other business units can file for Chapter 7 bankruptcy. Users are subjected to a means test for their income to see if they meet the eligibility requirements. The system measures your previous six months of income to determine an average monthly income currently. The test can be quite complicated and have different results for different incomes.

This is a general answer that should not be considered legal advice, but one of the main eligibility requirements for Chapter 7 bankruptcy is a means test. There are also other requirements including that the user has not filed for bankruptcy in the last 180 days and not had the case dismissed due to failure to appear or comply with a court order. An individual has to have had credit counseling from an approved credit counseling agency prior to filing for Chapter 7 bankruptcy as well.

If someone is having difficult with consumer debt olbigations, including credit card debt, finding support is important. Filing for bankruptcy can be a technical process that has several requirements before meeting eligibility. Users must have received credit counseling and pass a means income test. There are also other requirements about filing bankruptcy in the last 180 days.

Source: USCourts.gov, "Chapter 7," accessed on Sept. 20, 2014

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