There are several reasons you can be disqualified from filing or completing a bankruptcy case—some apply before filing, and others arise during the process. Here’s a clear breakdown of the main disqualifiers for both Chapter 7 and Chapter 13 bankruptcy:
🔹 1. Too Much Income for Chapter 7 (Means Test Failure)
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If your income is above the state median and you have sufficient disposable income, you may fail the means test and be ineligible for Chapter 7.
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In that case, you might still qualify for Chapter 13, which requires you to repay some debt over time.
🔹 2. Prior Bankruptcy Discharge Too Recently
| Prior Filing | Trying to File | Wait Time |
|---|---|---|
| Chapter 7 → Chapter 7 | 8 years | |
| Chapter 13 → Chapter 13 | 2 years | |
| Chapter 7 → Chapter 13 | 4 years | |
| Chapter 13 → Chapter 7 | 6 years (unless paid 70%+ of debts in full) |
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These rules apply only if you received a discharge in the previous case.
🔹 3. Bankruptcy Fraud or Dishonesty
You can be disqualified if you:
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Hide assets or income
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Transfer property to friends/family to shield it
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Provide false information on your paperwork
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Run up credit or take out loans right before filing (seen as “bad faith”)
Courts can dismiss your case or deny your discharge—and in some cases, you may even face criminal penalties.
🔹 4. Not Completing Required Courses
To file and finish a bankruptcy, you must:
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Complete a credit counseling course within 180 days before filing.
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Complete a debtor education course after filing but before discharge.
If you skip either, you could be disqualified or denied discharge.
🔹 5. Dismissed Prior Bankruptcy with Prejudice
If a previous bankruptcy was dismissed with prejudice (due to abuse, fraud, or failure to comply), you may be:
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Barred from refiling for 180 days or more
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Permanently disqualified from discharging certain debts
🔹 6. Insufficient Income for Chapter 13
Chapter 13 requires that you have regular income to support a repayment plan.
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If your income is too low or unstable, you won’t qualify.
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If your expenses exceed income, your plan may not be feasible, and the court may deny confirmation.
🔹 7. Exceeding Debt Limits (Chapter 13 only)
As of 2025, Chapter 13 debt limits are:
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Unsecured debt: ≤ $465,275
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Secured debt: ≤ $1,395,875
If your debts exceed these, Chapter 13 is not available (though Chapter 11 might be).
🔹 8. Failing to File Required Documents
You must submit:
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Complete and accurate schedules of assets, debts, income, expenses
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Tax returns, pay stubs, and other supporting documents
If you fail to file required documents, your case may be dismissed.
✅ Summary: Key Things That Disqualify You
| Disqualifier | Applies to |
|---|---|
| Too much income (means test) | Chapter 7 |
| Prior bankruptcy too recent | Chapter 7 & 13 |
| Fraud or hiding assets | Both |
| Missing required courses | Both |
| No regular income | Chapter 13 |
| Too much debt | Chapter 13 |
| Incomplete paperwork | Both |
| Dismissal with prejudice | Both |
If you’re unsure whether something in your situation disqualifies you, I can help assess your eligibility based on your income, debts, and history.
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