People often assume bankruptcy is reserved for those who have lost everything, or that it's off limits to anyone with a steady paycheck. Neither idea is quite right. Whether you can file, and which type of case fits, comes down to a handful of specific requirements.The Basic Starting PointAlmost any individual, married couple, or business can file for bankruptcy in the United States. There is no minimum debt you must owe to be eligible. The harder questions concern which chapter is open to you and whether anything in your history stands in the way. Reviewing who qualifies for bankruptcy before you talk to an attorney can save you time and help you ask better questions.The Means Test for Chapter 7Chapter 7 is the option most people picture, because it can eliminate many unsecured debts quickly. To use it, your income generally has to pass a means test:Your average monthly income over the six months before filing is compared to the median for your state and household size.If you fall below the median, you usually qualify.If you're above it, a second calculation subtracts allowed expenses to see whether you have enough disposable income to repay creditors.Passing isn't about how you feel your finances look. It's a formula, and some people are surprised to qualify even with a decent income once medical costs, taxes, and family size are factored in.When Chapter 13 Makes SenseIf your income is too high for Chapter 7, or you own property you want to protect, Chapter 13 may be the better fit. It requires regular income and places limits on how much debt you can carry. The reward is a manageable repayment plan, generally three to five years, that can stop foreclosure and let you catch up on missed payments over time.Requirements Everyone FacesRegardless of the chapter, these rules apply:You must complete credit counseling with an approved agency within 180 days before filing.You must provide accurate and complete financial information under penalty of perjury.You must pay the court filing fee, or ask permission to pay in installments or have it waived in limited cases.After filing, you must complete a debtor education course to receive a discharge.Timing and Prior FilingsPast bankruptcies can delay a new one. In general, you must wait about eight years after receiving a Chapter 7 discharge before receiving another one, and shorter windows apply in other combinations, such as Chapter 13 followed by Chapter 7. Additionally, if a previous case was dismissed because you missed required steps or dropped it after a creditor asked to lift the stay, you may face a waiting period before refiling.Debts That Don't Go AwayBeing eligible doesn't mean every debt disappears. Common examples that usually survive include:Child support and alimonyMost recent tax debtsMost student loans, unless you prove undue hardshipCourt-ordered fines and restitutionSecured debts, like a mortgage or car loan, also remain attached to the property unless you keep paying or give the property up.Honesty MattersHiding assets, transferring property to relatives right before filing, or running up large charges just before a case can lead to denial of a discharge or even criminal consequences. Trustees review paperwork carefully, so completeness and honesty protect you.A Practical Next StepEligibility rules are technical, and the details of your own case can change the answer. Gather six months of income records, a list of what you owe, and a list of what you own, then schedule a consultation. Knowing where you stand is the first step toward deciding what to do about it.

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