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We fund business owners nationwide, regardless of industry, credit, or time in business. We fund it all.

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We have a lot of different financing options available to our clients. Regardless of your situation, we’ll have a solution for you.

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Our application process is completely online. You can get funds in your bank account in literally 24 hours.

The Working Capital You Need In 24 Hours.

We get you funding. It's that simple. Regardless of credit, income, or time in business - we'll fund you.


Use our online form or call toll-free anytime to get started. There's no cost, and the application takes only three minutes.


Receive application approval in as little as 24 hours. There is no credit check required.

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Review and return your signed agreement and get your money in as little as 24 hours.

Recent Business Loans Funded

100K Term Loan

Ambulance Service

Our client bought a new ambulance.
2019 - June
55K Advance

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Our client used the funds to hire new team members.
2019 - February
85K Term Loan

Restaurant Funded

Our client used the funds for restaurant equipment.
2019 - May

Get a Decision in as Little As 30 Seconds

We’re Fast. We Help Regardless of Credit. WE HAVE A SOLUTION FOR YOU.

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We'll match you with the best loan offers we have that are financially responsible.

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We'll fund you the same day you accept our offer.

How Delancey Street Works

Fill Out Our Application

Answer basic questions about yourself and fill out our entirely online application. Each loan has its own online process.

Meet Your Concierge

We'll pair you with an experienced Delancey Street specialist who will reach out to you, and understand your needs. We'll try to determine which financial product is right for you.

Compare Our Loan Offers

We give you a few different loan offers based on your scenario and what options you qualify for.

Choose Your Loan

Once you've chosen a loan that works for you, we finalize it and start getting the documents needed.

Get Funded

Once we get all of the documents back, we'll get you funded ASAP.

We Help You Grow

After you get funded, your Delancey Street concierge specialist will keep in touch to make sure you're happy and doing well.

Business Loans

Get business loans ranging from 3 months to 18 months
No credit score requirement, we have a program for everyone
We can fund up to $5 million in virtually 24 hours

Am I Eligible to File for Chapter 7 Bankruptcy?



Am I Eligible to File for Chapter 7 Bankruptcy?

Filing for bankruptcy can be a confusing process. With different chapters and eligibility requirements, it’s hard to know if you qualify for relief. This article focuses specifically on Chapter 7 bankruptcy and whether you meet the qualifications to file.

Chapter 7 bankruptcy, also called straight or liquidation bankruptcy, can eliminate many types of unsecured debt like credit cards, medical bills, personal loans, etc. But not just anyone can pursue Chapter 7 bankruptcy. Let’s break down the eligibility requirements and see if you might qualify.

Chapter 7 Bankruptcy Basics

In Chapter 7 bankruptcy, a trustee is appointed to oversee your case. They liquidate (sell) most of your assets to pay back as much debt as possible. The remaining unpaid debt is discharged, meaning you’re no longer legally obligated to pay it back.

However, you may get to keep certain assets like clothing, household items, and possibly a vehicle. The trustee won’t take property that is exempt under your state’s law. Every state has its own exemption laws listing property debtors can keep in bankruptcy.

While Chapter 7 wipes out many debts, some are non-dischargeable. This includes student loans, alimony, child support, and certain taxes. You’ll still owe these after bankruptcy.

Chapter 7 Eligibility Requirements

So how do you know if you qualify for Chapter 7 bankruptcy? Here are some of the main eligibility factors:

  • You must undergo credit counseling from an approved agency within 180 days before filing.
  • Your income must be below the median level for your state.
  • You must pass the Chapter 7 means test.
  • You can’t have filed Chapter 7 bankruptcy within the past 8 years.
  • You can’t have filed Chapter 13 bankruptcy within the past 6 years.
  • You must be an individual, not a business or partnership.

Let’s look at each requirement more closely:

Pre-Bankruptcy Credit Counseling

Before filing Chapter 7, you have to complete a credit counseling course with an approved agency. This session lasts around 90 minutes and covers topics like managing finances, budgeting, and bankruptcy alternatives. You can take the counseling online, over the phone, or in person.

The counseling has to be finished within 180 days before your bankruptcy filing. After completing the course, the agency gives you a certificate of completion. This certificate is required for the bankruptcy court.

Below Median Income

To file Chapter 7, your income must fall under the median level for households of the same size in your state. For example, the 2022 median income for a single person household in California is $63,282. So a single filer in California making below this amount could likely qualify for Chapter 7 assuming they meet the other requirements.

If your income exceeds the median, you may still be able to file Chapter 7 by passing the means test (more details below). You can find median income tables listing all 50 states on the U.S. Trustee’s website[1].

Passing the Chapter 7 Means Test

The Chapter 7 means test determines whether a filer with higher income can still qualify for liquidation bankruptcy. It looks at your average monthly income over the past 6 months and subtracts necessary living expenses.

If the remaining amount is below a certain threshold based on where you live, you pass the means test. This allows higher earners who have a lot of expenses to still file Chapter 7 bankruptcy.

The means test calculation is complex. Online calculators can help you run the numbers to see if you might pass. If you’re borderline, consider talking to a bankruptcy attorney who can review your specific situation.

Previous Bankruptcy Restrictions

You aren’t eligible for Chapter 7 bankruptcy if you’ve had any other bankruptcy discharge in the past:

  • Chapter 7 discharge within last 8 years
  • Chapter 13 discharge within last 6 years

The court wants to prevent abuse where debtors file again and again to wipe out debt. Waiting out the time restrictions helps ensure your situation is truly dire before granting another discharge.

Individuals Only

Chapter 7 bankruptcy is only available for individuals, not businesses. Partnerships and corporations don’t qualify. However, sole proprietors and single member LLCs can file personal Chapter 7 to discharge business and personal debts.

Other Chapter 7 Restrictions

In addition to the main eligibility requirements, some other situations may prevent you from filing Chapter 7 bankruptcy:

  • Previous case dismissed for failure to appear at court hearing or follow court orders
  • Previous case voluntarily dismissed after creditor filed motion for relief from stay
  • Evidence of abuse or improper actions evident in filings
  • Debts are primarily from student loans or taxes

The court trustee will review each case carefully to identify any red flags of abuse. For example, if you racked up credit card debt right before filing, the trustee may investigate whether you were using the cards knowing you planned to file bankruptcy.

Alternatives to Chapter 7 Bankruptcy

If you don’t qualify for Chapter 7, all hope is not lost. You may still be able to file under Chapter 13 bankruptcy. This involves a 3-5 year structured repayment plan to pay back creditors over time. Chapter 13 has more flexible income limits.

Debt management plans and debt consolidation loans also provide alternatives to bankruptcy. Or you may be able to negotiate settlements on your own directly with creditors.

Chapter 7 bankruptcy offers a powerful way to eliminate debt for those who qualify. Review the eligibility criteria carefully to see if your situation meets the requirements. Speak to a bankruptcy attorney if you need help determining whether you can file.

With the right preparation, you can successfully navigate the Chapter 7 process and get a fresh financial start.


U.S. Trustee Means Testing Information

Delancey Street is here for you

Our team is available always to help you. Regardless of whether you need advice, or just want to run a scenario by us. We take pride in the fact our team loves working with our clients - and truly cares about their financial and mental wellbeing.

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