An individual, a partnership, or a corporation or other business entity is eligible to file for chapter 7 bankruptcy relief. These entities are eligible to file chapter 7 no matter how much they owe in debts and whether they are solvent or insolvent.
It should be noted though, that in many cases, it is not advisable for corporations and other business entities to file for chapter 7 as they can close their business and wind up their affairs under general Florida laws. In certain circumstances though, the filing of chapter 7 may be appropriate and helpful.
Serial Bankruptcy Filings
An entity cannot file under chapter 7 or any other chapter, however, if during the preceding 180 days a prior bankruptcy petition was dismissed with prejudice due to the debtor’s willful failure to appear before the court or comply with orders of the court, or the debtor voluntarily dismissed the previous case after creditors sought relief from the bankruptcy court to recover property upon which they hold liens.
Credit Counseling Course
In addition, no individual may be a debtor under chapter 7 or any chapter of the bankruptcy code unless he received credit counseling from an approved agency with 6 months before filing. The course may be taken over the internet. One such counseling agency is www.credability.org. Upon the completion of the course, you are given a certificate which needs to be filed with the Bankruptcy Court upon filing.
A second course, a bankruptcy pre-discharge education course is required is required in the middle of the case, in order to receive you chapter 7 discharge. The certificate you receive after the completion of the course is also filed with the bankruptcy court. If this certificate is not filed, the case will be closed without the issuance of your discharge of debt.