Chapter 7 is often called the "fresh start" bankruptcy because qualifying debt is wiped out entirely. Three factors determine whether you qualify.
The three things that decide it
Chapter 7 eligibility comes down to these, in this order.
Income
Your household income is compared against the Missouri median for your family size. Under it, you qualify. Over it, you move to the means test, which subtracts your actual living expenses before deciding.
Property
Exemptions protect most of what ordinary households own: your home equity up to the limit, a vehicle, household goods, retirement accounts, tools of your trade. Anything beyond the exemptions is what the trustee can reach.
Timing
If you've filed before, there are waiting periods: eight years between Chapter 7 filings, and shorter windows between a Chapter 13 and a Chapter 7.
1. Property Value
If you own substantial equity in a home, vehicle, or other property, the bankruptcy trustee may have authority to sell it and use the proceeds to pay creditors. Many people assume their home and car are automatically protected — that's not always true. Exemption rules vary, and an attorney needs to evaluate your specific situation.
2. Income
If your income is high enough that you could reasonably pay back creditors, you won't qualify for Chapter 7. Income thresholds vary by household size and state, and they change periodically. People above the threshold typically file Chapter 13 instead, which is a structured repayment plan.
3. Prior Filings
Timing rules limit how often you can file. You generally cannot receive a Chapter 7 discharge within eight years of a previous Chapter 7, or within six years of a Chapter 13 in most cases.
Don't Guess — Ask
Chapter 7 qualification is more nuanced than these three rules suggest. The means test, exemption planning, and timing all interact. The fastest way to know is to call us — consultations are free, and we'll tell you straight.