Eligibility for Chapter 7
An individual, a partnership, and a corporation or other business entity may file for chapter 7 relief. There is no requirement of insolvency in order to qualify for chapter 7 relief. A case may be dismissed "for cause."
The case of an individual whose debt is primarily consumer debt may be dismissed if the court finds that the case is an "abuse." The case will be presumed to be an "abuse" if it does not pass the "means test" which was added to the Bankruptcy Code in 2005.
The case of an individual whose debt is primarily consumer debt may be dismissed if the court finds that the case is an "abuse." The case will be presumed to be an "abuse" if it does not pass the "means test" which was added to the Bankruptcy Code in 2005.