Chapter 7 bankruptcy is what most people think of when they think of filing for bankruptcy. A Chapter 7 bankruptcy will generally allow the debtor to wipe out (discharge) debts owed to non-secure creditors (such as medical debts and credit card bills). However, not everyone qualifies for a Chapter 7 bankruptcy. Qualifying for Chapter 7 bankruptcy depends on many factors, including your income and past bankruptcy filings. To determine whether you qualify for a Ch. 7 bankruptcy, you must take a means test, which assesses your ability to repay debts based on your disposable income.
Key Requirements for a Chapter 7 Bankruptcy
Means Test: Your average monthly income over the last six months is compared to the state's median income for a household your size (click here for Arkansas’ median income per household size).
Income below the state median generally qualifies you. As of November 1, 2025, Arkansas' median income for a household of four was $94,566.
If your income is above the median, you may still qualify if, after deducting certain expenses, your disposable income is below a set threshold. Some individuals, like certain disabled veterans, are exempt from this test.
No Recent Bankruptcies: You cannot have received a Chapter 7 discharge in the past eight years or a Chapter 13 discharge in the past six years.
No Prior Dismissals: Your previous bankruptcy case must not have been dismissed within the last 180 days for reasons like fraud or failing to comply with court orders.
Credit Counseling: You must complete a credit counseling course from an approved agency within 180 days before filing (AR Law Partners will can help you set up a credit counseling course).
No Fraudulent Intent: The court may dismiss your case if there is evidence of attempting to defraud creditors.
Next Steps in the Bankruptcy Process
Due to the specific calculations involved, it is highly recommended to consult with an experienced bankruptcy attorney who can help determine your eligibility based on your financial situation. AR Law Partners has experienced bankruptcy attorneys who are happy to help you determine whether a bankruptcy is right for you. We offer free consultations and assist individuals across the state of Arkansas from our convenient office locations in Fayetteville and Little Rock. Give us a call at (501) 710-6500 or (479) 480-4900 to see if bankruptcy is right for you.
AR Law Partners is a debt relief agency. We help people file for bankruptcy relief under the United States Bankruptcy Code.
