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How hard is it to get approved for bankruptcy?

On Behalf of | Nov 25, 2016 | Chapter 7

If you are experiencing financial troubles, bankruptcy might be one of the options you are considering to help you recover. You might have heard that personal bankruptcy is becoming more common. You might also have been told that it is difficult to be approved for a Chapter 7 discharge, or the opposite – that you can easily be approved for a bankruptcy. The truth is that being approved for Chapter 7 largely depends on your income, as well as a few other factors. The following is information that you and other Eugene residents should understand before filing for bankruptcy.

The Balance states that a Chapter 7 approval is primarily dependent upon your ability to repay a portion or all of your debts. You will most likely be required to take a means test, which evaluates your income and your family size and compares it with Oregon’s median income. To file for bankruptcy, you must not have had a previous Chapter 7 discharge within the last eight years or a Chapter 13 in the last six years. You would need to file as an individual, a married couple or a small business owner. Larger companies do not qualify for Chapter 7. Finally, you would be required to undergo a government-approved credit counseling program.

If you do not pass the means test or fail to qualify for Chapter 7 for a number of factors, you would likely be instructed to file for a Chapter 13 repayment plan, or your application might be dismissed. Each family’s situation is different, so it is important not to take the information presented in this post as legal advice.


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The Law Office of Kim Covington is a debt relief agency, and I have helped families, individuals and small businesses, file for bankruptcy relief under the U.S. Bankruptcy Code, for over 22 years.