When financial pressure becomes overwhelming, it’s common to wonder what might prevent you from filing for bankruptcy. In truth, many residents of Washington can seek relief through Chapter 7 or Chapter 13, but there are significant regulations that could hinder a case or discharge.
Integrity Law Group, PLLC helps people across Seattle understand their options and move forward with confidence. If you prefer to start with the basics, Integrity Law Group’s overview of filing bankruptcy in Washington is a helpful primer to get you oriented.
Table of Contents
What Disqualifies You From Filing Bankruptcy – Chapter 7:
Chapter 7 is often called a fresh start, and it is also where most questions about what disqualifies you from filing for bankruptcy come up. The first hurdle is income and the means test. Federal law requires most Chapter 7 filers to complete the means test forms, which compare your household income and certain allowed expenses to see if a Chapter 7 would be an abuse of the system. The U.S. Trustee Program publishes the means testing forms and guidance for you to review. If the presumption of abuse arises, the court can dismiss or convert your case under 11 U.S.C. § 707(b). The statute also tells judges to consider bad faith or the totality of the circumstances even when the presumption does not arise.
A simple example helps illustrate this. Imagine a single filer in King County earning well above the state median with a significant monthly surplus after allowed expenses. The math may show enough disposable income to pay creditors. In that situation, Chapter 7 may be presumed abusive, and the case can be dismissed or converted to Chapter 13.
The second factor involves prior discharges. If you received a Chapter 7 discharge less than eight years before a new Chapter 7 filing, you are not entitled to a new Chapter 7 discharge. That rule comes from 11 U.S.C. § 727(a)(8), which is summarized on the federal courts’ discharge basics page. The waiting periods between different chapters vary, particularly if you are moving from one chapter to another.
Third is the 180-day bar for certain dismissed cases. If a prior bankruptcy was dismissed in the last 180 days because you willfully failed to appear or obey court orders, or you voluntarily dismissed the case after a creditor moved for relief from the automatic stay, you are ineligible to file under any chapter for 180 days. You can read more about Chapter 7 eligibility and 11 U.S.C. § 109(g) to understand this restriction.
Fourth is fraud or dishonesty. A Chapter 7 discharge can be denied if you transfer, conceal, or destroy property to hinder or defraud creditors, or if you make false oaths. These grounds appear in 11 U.S.C. § 727(a). Denial of discharge is serious because it means most if not all dischargeable debts survive the case.
Finally, watch recent luxury spending and cash advances. Even if you are otherwise eligible, consumer debts for luxury goods or services incurred within 90 days before filing, and certain cash advances within 70 days, may be presumed fraudulent and not discharged. The dollar thresholds adjust for inflation. As of April 1, 2025, the federal adjustment set the luxury purchase threshold at $900 and the cash advance threshold at $1,250. You can review the Judicial Conference notice in the Federal Register listing the new 11 U.S.C. § 523(a)(2)(C) amounts. Suppose you charged a $1,100 designer item six weeks before filing. That purchase may be presumed nondischargeable, which means you could complete a case and still owe that debt.
What Disqualifies You From Filing Bankruptcy – Chapter 13:
Chapter 13 is a repayment plan where you will work with your lawyer to create a repayment plan that pays some or a feasible amount of your debt over three to five years. Chapter 13 has its own gatekeepers, starting with debt limits.
To qualify as an individual in Chapter 13, you must have less than $526,700 in noncontingent, liquidated unsecured debt and less than $1,580,125 in noncontingent, liquidated secured debt for cases filed on or after April 1, 2025. The United States Courts Chapter 13 page cites 11 U.S.C. § 109(e), and the Federal Register chart reflects the specific adjusted amounts. If your debts exceed those limits, Chapter 13 is not available, and some people then consider Chapter 11 instead. Integrity Law Group can help you compare paths.
Required tax returns are another strict rule. Before the first meeting of creditors, Chapter 13 filers must have filed all tax returns for the four years before the case, and the plan cannot be confirmed unless those returns are filed. See 11 U.S.C. § 1308 and § 1325(a)(9). If returns are missing, the case can be dismissed or the plan denied.
Regular income and a feasible plan are also essential. Chapter 13 is meant for people with regular income. The court must find the plan proposed in good faith and that it is feasible based on your budget. See § 1325(a). If the numbers do not work, or if the plan is not proposed in good faith, the court can deny confirmation.
Prior cases and waiting periods also apply here. If you received a prior Chapter 7 discharge and now seek a Chapter 13 discharge, you generally must wait four years from the filing date of the Chapter 7 to the filing date of the new Chapter 13. For a Chapter 13 after Chapter 13, the waiting period is generally two years between filing dates to receive a second Chapter 13 discharge. See 11 U.S.C. § 1328(f). The 180-day ineligibility rule in § 109(g) also applies to Chapter 13 if your recent case was dismissed for the reasons described earlier.
Everyone: complete credit counseling first
Another frequent disqualifier is simply missing the pre-filing credit counseling. With rare exceptions, individual debtors must complete a credit counseling briefing from an approved provider within the 180 days before filing, or the case can be dismissed. In Washington’s Western District, the court summarizes this credit counseling requirement. The statute governing this is 11 U.S.C. § 109(h).
How Washington specifics fit in
Bankruptcy is federal, but Washington exemptions and local procedures matter. For example, Washington’s homestead exemption is governed by RCW 6.13. The exemption protects qualifying home equity from judgment creditors and interacts with your bankruptcy case, though it does not change basic eligibility. You can read the homestead statute RCW 6.13.070 and related limitations at RCW 6.13.080. Filing details for the U.S. Bankruptcy Court for the Western District of Washington are available on their Ready to File page. Integrity Law Group helps you choose between state and federal exemptions and prepares the local filings the right way.
Quick examples that make the rules real
A Seattle parent with two kids earns above the state median and shows $900 in monthly disposable income after allowed expenses. The means test presumes abuse. Chapter 7 may not be available, but Chapter 13 could provide a structured plan to pay a portion of the debt while protecting a car and household goods. Chapter 13 can often protect your home in ways Chapter 7 cannot.
A Bellevue homeowner used a credit card for a $1,200 luxury item 60 days before filing and also took a $1,300 cash advance. Those amounts are above the 2025 thresholds. Even if the case proceeds, those charges are presumed nondischargeable and may survive the case unless you rebut the presumption. See the Federal Register adjustment of § 523(a)(2)(C) thresholds.
A Tacoma renter completed Chapter 7 three years ago and now faces new debt. A new Chapter 7 discharge is not available yet because of the eight-year rule. Depending on income and goals, Chapter 13 might provide relief sooner. See the federal courts’ discharge basics page.
A Shoreline contractor skipped filing tax returns for the last four years but wants to stop a garnishment with Chapter 13. The case cannot be confirmed until those returns are filed. The fix is to file the missing returns quickly so a feasible plan can move forward. See § 1308 and § 1325(a)(9).
Why talk to Integrity Law Group now
No two households have the same income swings, assets, or timelines. Small details change outcomes, like the month your income is measured for the means test, whether a debt is noncontingent and liquidated for Chapter 13 limits, and which exemption scheme is better for you. Integrity Law Group reviews your pay stubs, tax status, assets, and recent transactions to build a plan that avoids eligibility traps and aims for the cleanest path to relief. You can learn more about our Bankruptcy and Debtor Rights practice or read more about Chapter 7 in Washington State on our blog.
If you are ready to discuss your specific situation, we invite you to meet the team, read our client testimonials, and contact us to schedule a consultation.
Frequently Asked Questions
What disqualifies you from filing bankruptcy?
Factors that disqualify you from filing bankruptcy include having insufficient debt, failing to complete mandatory credit counseling, and having previously filed for bankruptcy within the past eight years. See the article above for more details.
What disqualifies you from filing Chapter 7 bankruptcy?
Disqualifications for Chapter 7 bankruptcy include exceeding the income limits set by the median income in your state, having filed for Chapter 7 in the last eight years, or being found guilty of bankruptcy fraud.
What disqualifies you from filing Chapter 13 bankruptcy?
You may be disqualified from filing Chapter 13 bankruptcy if your unsecured debts exceed $465,275 or your secured debts exceed $1,395,875, or if you have failed to make payments under a previous Chapter 13 plan.
What disqualifies you from filing bankruptcy under the means test?
The means test disqualifies individuals if their income is above the median income for their household size in their state, indicating they have the ability to repay some of their debts.
What disqualifies you from filing bankruptcy if you are self-employed?
Self-employed individuals may be disqualified from filing bankruptcy if they cannot provide necessary documentation of their income and expenses, or if they fail to meet the income thresholds required under the means test.
What disqualifies you from filing bankruptcy due to recent financial behavior?
Engaging in fraudulent transfers, incurring debts with the intent to discharge them, or making large cash withdrawals shortly before filing can disqualify you from bankruptcy.
What disqualifies you from filing bankruptcy if you have prior bankruptcies?
If you have filed for bankruptcy previously, you may be disqualified from filing again for a set period, typically eight years for Chapter 7 and two years for Chapter 13, depending on your circumstances.