Bankruptcy Disqualifications in Phoenix

Time Bars: Prior Discharges

If you received a bankruptcy discharge in a prior case, federal law imposes waiting periods before you can receive another discharge. Under 11 U.S.C. section 1328(f):

Chapter 7 after Chapter 7: Wait 8 years from the prior filing date
Chapter 7 after Chapter 13: Wait 6 years from the prior filing date (exception: if you paid 100% of unsecured claims or 70% with best-effort)
Chapter 13 after Chapter 7: Wait 4 years from the prior filing date
Chapter 13 after Chapter 13: Wait 2 years from the prior filing date

Use the 1328(f) screener to check your exact eligibility dates.

Means Test Failure

If your income is above the Arizona median ($56,381 for one person) and you cannot reduce your disposable income below the threshold through allowed deductions, you may be blocked from Chapter 7. This is not a permanent disqualification -- you can:

File Chapter 13 instead (no income cap)
Wait until your income decreases (the means test uses a 6-month average)
Work with an attorney to identify all allowable deductions you may be missing

Prior Case Dismissals

If a prior bankruptcy case was dismissed, it can affect your ability to file again:

Dismissed within 180 days for willful failure to comply: You cannot file a new case for 180 days (section 109(g)(1))
Voluntarily dismissed after a creditor filed for relief from stay: You cannot file for 180 days (section 109(g)(2))
One prior dismissal within the past year: The automatic stay in the new case lasts only 30 days unless extended by court order
Two or more prior dismissals within the past year: No automatic stay at all without a court order

Other Disqualifying Factors

Cannot File At All

Did not complete credit counseling within 180 days before filing
Not an individual (Chapter 7/13 are for individuals only; businesses use Chapter 11)
Within the 180-day bar period from a prior dismissal
Stockbrokers and commodity brokers (must use Chapter 7 liquidation under specific rules)

May Be Dismissed for Abuse

Filing primarily to delay creditors with no intent to complete the case
Hiding or transferring assets before filing
Incurring luxury debts shortly before filing
Making false statements on schedules or Statement of Financial Affairs
Failing to file required documents within deadlines

Frequently Asked Questions

What disqualifies you from filing bankruptcy?

The main disqualifiers are: time bars from prior discharges, failing the means test for Chapter 7 (income above $56,381 for one person in Arizona without sufficient deductions), prior case dismissed within 180 days, and failure to complete credit counseling.

How long do I have to wait between bankruptcies?

Chapter 7 to Chapter 7: 8 years. Chapter 13 to Chapter 13: 2 years. Chapter 7 to Chapter 13: 4 years. Chapter 13 to Chapter 7: 6 years. Use the 1328(f) screener to check your dates.

Can I be denied Chapter 13?

Chapter 13 has no income limit but requires regular income and debts under $2,750,000. If you lack regular income or exceed debt limits, you cannot file Chapter 13. Prior dismissals may also limit your filing.

What is the 180-day rule?

If your prior case was dismissed within 180 days for willful failure to comply with court orders or after a creditor moved for stay relief, you cannot file a new case for 180 days.

Can I file bankruptcy without credit counseling?

No. Credit counseling from an approved agency is required within 180 days before filing. The court will dismiss your case if the certificate is not provided. Most courses can be completed online in about an hour.

What if I was denied Chapter 7 -- can I still file in Phoenix?

Yes. If you fail the means test for Chapter 7, you can file Chapter 13 in the District of Arizona. Chapter 13 has no income cap and allows you to repay debts over 3-5 years.