Key Takeaways
- Most “disqualifiers” don’t stop you from filing; they can delay or block your discharge (the order that wipes out the debt).
- Timing after a prior case: 8 years between Chapter 7 discharges, 2 years between Chapter 13s, and 4 years from a Chapter 7 discharge to a Chapter 13 discharge.
- Income: being over Michigan’s median (1 person: $67,352) doesn’t disqualify you. You take the full means test, and may still qualify for Chapter 7, or use Chapter 13.
- Chapter 13 has debt limits: currently $526,700 unsecured and $1,580,125 secured (a change is pending in Congress).
- Skipping required courses, hiding assets, or recent luxury charges and cash advances can each cost you a discharge.
Almost anyone can file for bankruptcy. The real question is what can stop you from getting a discharge, the court order that erases your debt. In Detroit, the usual roadblocks are timing after a past case, high income, missed requirements, dishonesty, and certain debts that bankruptcy can’t touch.
Detroit residents file in the U.S. Bankruptcy Court for the Eastern District of Michigan. Bankruptcy is federal law, so the rules below are national, but the income limits use Michigan’s numbers. Here is what to watch for.
Can You File Bankruptcy Again After a Previous Case?
You can almost always file again right away. What the law limits is how soon you can receive another discharge. If you file too early, the court will take your case but deny the discharge, so timing matters. The waiting periods run from the filing date of the old case to the filing date of the new one.
| Prior case (discharged) | New case | Wait (filing to filing) | Statute |
|---|---|---|---|
| Chapter 7 | Chapter 7 | 8 years | § 727(a)(8) |
| Chapter 13 | Chapter 7 | 6 years (unless you paid 100% of unsecured debt, or at least 70% in a good-faith, best-effort plan) | § 727(a)(9) |
| Chapter 7 | Chapter 13 | 4 years | § 1328(f)(1) |
| Chapter 13 | Chapter 13 | 2 years | § 1328(f)(2) |
These are the correct rules under 11 U.S.C. § 727(a)(8)–(9) and § 1328(f).[2] Even when a discharge isn’t available yet, a new filing can still stop a foreclosure or wage garnishment, which is sometimes reason enough to file.
Is Your Income Too High for Chapter 7?
No single income number disqualifies you. This is the most common misunderstanding. Chapter 7 uses a two-step “means test.” First, your household income is compared to the Michigan median for your household size. If you are at or below the median, you pass and can proceed. If you are above it, you move to the full calculation on Official Form 122A-2, which subtracts allowed living expenses. Many above-median filers still pass and qualify for Chapter 7; those who don’t can use Chapter 13 instead.[1]
For cases filed on or after April 1, 2026, the Michigan median family income figures are:
| Household size | Michigan median annual income |
|---|---|
| 1 earner | $67,352 |
| 2 people | $83,432 |
| 3 people | $103,449 |
| 4 people | $123,010 |
| Each additional person | add $11,100 |
These figures change periodically, so always confirm the current table with the U.S. Trustee Program before relying on them.[1]
Did You Complete Every Required Step?
Bankruptcy has a short checklist of mandatory steps. Miss one and the case can be dismissed or the discharge withheld. The real requirements are:
- Credit counseling before filing. You must complete a briefing with an approved agency within the 180 days before you file (11 U.S.C. § 109(h)).
- Debtor education after filing. Before you get a discharge, you must finish a financial-management course (§ 727(a)(11) for Chapter 7, § 1328(g) for Chapter 13).
- Documents. File your schedules, provide recent tax returns and pay stubs, and keep the trustee supplied with what they request.
- The 341 meeting. You must attend the meeting of creditors and answer questions under oath.
- The 180-day refiling bar. If a prior case was dismissed because you ignored a court order or failed to appear, or you voluntarily dismissed after a creditor asked to lift the automatic stay, you cannot refile for 180 days (§ 109(g)).
Did You Falsify or Conceal Information?
Bankruptcy runs on complete honesty, and this is where a case most often collapses. You must give accurate, complete information on your forms and schedules. Falsifying information means putting intentionally false details on your paperwork, such as understating income, undervaluing assets, or leaving off debts. Concealing information means hiding assets, transferring property to keep it out of the estate, or withholding records you are required to disclose.
The consequences are serious. A court can deny or revoke your discharge under 11 U.S.C. § 727(a), dismiss the case entirely, and refer it for prosecution. Bankruptcy fraud is a federal crime under 18 U.S.C. § 152, punishable by fines and up to five years in prison.[7] Full, honest disclosure is always the safer path, and trustees see complicated finances every day.
Is Your Debt Too High for Chapter 13?
Chapter 13 is the one chapter with a dollar ceiling. You are only eligible if your debts fall under the limits in 11 U.S.C. § 109(e). For cases filed between April 1, 2025 and March 31, 2028, the limits are $526,700 in unsecured debt and $1,580,125 in secured debt.[5] If your debts are higher, Chapter 7 or Chapter 11 may be the better fit.
Heads up: a debt-limit change is pending
On September 28, 2026, Congress passed the Bankruptcy Threshold Adjustment Act (H.R. 7730), which would replace the two Chapter 13 limits with a single $2,750,000 combined limit. As of October 6, 2026, it has passed Congress and is awaiting the President’s signature, so the figures above are the limits in effect today. Confirm the current status before you file.[6]
Which Debts Won’t Bankruptcy Discharge?
Sometimes the problem isn’t you, it’s the debt. Even a successful case leaves certain debts standing.
Non-Dischargeable Debts
Some debts survive almost every bankruptcy: child and spousal support, most recent taxes, most student loans, debts from fraud, debts for willful or malicious injury, and debts for injury or death caused by drunk driving (11 U.S.C. § 523(a)).
Recent Luxury Purchases and Cash Advances
Charges run up right before filing can be challenged. Under § 523(a)(2)(C), luxury goods or services over $900 from one creditor within 90 days, and cash advances over $1,250 within 70 days, are presumed non-dischargeable (amounts effective April 1, 2025).[5] That presumption can be rebutted, but the safe move is to stop using credit well before you file. (This is a separate rule from the means test’s “presumption of abuse” under § 707(b).)
Certain Tax Debts
Most taxes are not dischargeable, but older income taxes can be. Generally, income tax is dischargeable only if the return was due at least three years ago, was actually filed at least two years ago, and the tax was assessed at least 240 days ago (§ 523(a)(1), § 507(a)(8)). Payroll and sales “trust-fund” taxes are never discharged.
Debts You Forget to List
You must list every debt. In an asset case, a creditor you leave off your schedules may not be discharged, so be thorough and transparent.
Not Sure If Something Disqualifies You?
Most of these roadblocks have a workaround once you know the rules, the right timing, the right chapter, or fixing a problem before you file. Frego & Associates has helped Detroit-area families get a fresh start for over 30 years, and the first conversation costs nothing.
Frequently Asked Questions
How long after Chapter 7 can I file Chapter 13?
You can file a Chapter 13 at any time, but you cannot receive a Chapter 13 discharge until four years after the date you filed a Chapter 7 that resulted in a discharge (11 U.S.C. § 1328(f)(1)). Filing a Chapter 13 soon after a Chapter 7 is common and is often called a “Chapter 20.” It can still help you handle debts that Chapter 7 did not erase, even without a new discharge.
Can I file Chapter 7 if I make more than the Michigan median?
Often, yes. Earning above the Michigan median (for one person, $67,352 for cases filed on or after April 1, 2026) does not disqualify you. You complete the full means test, which subtracts allowed living expenses. Many above-median filers still qualify for Chapter 7. If you don’t, Chapter 13 is available.
Do I need credit counseling before filing?
Yes. You must complete a credit counseling briefing with an approved agency within the 180 days before you file (11 U.S.C. § 109(h)), and a separate debtor-education course after filing before you can receive a discharge. Narrow exceptions exist for emergencies.
Can bankruptcy wipe out back taxes?
Sometimes. Older income taxes can be discharged if the return was due at least three years ago, was filed at least two years ago, and the tax was assessed at least 240 days ago. Recent income taxes, and payroll or sales “trust-fund” taxes, generally cannot be discharged. A bankruptcy attorney can check the dates on your specific tax debt.
What happens if I forget to list a debt?
You must list every creditor. In a case with assets to distribute, a debt you leave off your schedules may not be discharged, and intentionally omitting a creditor can raise fraud concerns. If you realize a debt is missing, tell your attorney right away so the schedules can be amended.
Sources
- U.S. Trustee Program, Department of Justice, “Means Testing” and Census Bureau Median Family Income table for cases filed on or after April 1, 2026 (Michigan: $67,352 / $83,432 / $103,449 / $123,010; add $11,100 per additional person). Retrieved October 6, 2026.
- 11 U.S.C. § 727 (Chapter 7 discharge, 8-year bar, grounds for denial) and § 1328 (Chapter 13 discharge, 4-year and 2-year bars). Legal Information Institute, Cornell Law School. § 727, § 1328
- 11 U.S.C. § 109 (eligibility, credit counseling § 109(h), 180-day refiling bar § 109(g), Chapter 13 debt limits § 109(e)). law.cornell.edu/uscode/text/11/109
- 11 U.S.C. § 523 (exceptions to discharge), including § 523(a)(2)(C) (recent luxury purchases and cash advances) and § 523(a)(1) (tax debts); § 507(a)(8) (priority taxes). law.cornell.edu/uscode/text/11/523
- Judicial Conference dollar-amount adjustments effective April 1, 2025 (90 F.R. 8941): Chapter 13 limits $526,700 unsecured / $1,580,125 secured (§ 109(e)); § 523(a)(2)(C) amounts $900 / $1,250. federalregister.gov
- H.R. 7730, Bankruptcy Threshold Adjustment Act, 119th Congress — passed by Congress September 28, 2026, awaiting the President’s signature. congress.gov/bill/119th-congress/house-bill/7730
- 18 U.S.C. § 152 (concealment of assets; false oaths and claims; bankruptcy fraud). Legal Information Institute, Cornell Law School. law.cornell.edu/uscode/text/18/152
This article is general information about bankruptcy eligibility in Michigan, not legal advice, and reading it does not create an attorney-client relationship. Income limits, dollar thresholds, and the law change; verify current figures with a licensed attorney or the cited authorities. Last updated: October 6, 2026.
