To qualify for relief under chapter 7 of the Bankruptcy Code, the debtor may be an individual, a partnership, or a corporation or other business entity. Subject to the means test for individual debtors, relief is available under chapter 7 regardless of the amount of the debtor's debts or whether the debtor is solvent or insolvent.

But an individual cannot file under chapter 7 or any other chapter if during the preceding 180 days a prior bankruptcy petition was dismissed 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.

In addition, no individual may be a debtor under chapter 7 or any chapter of the Bankruptcy Code unless he or she has, within 180 days before filing, received credit counseling from an approved credit counseling agency either in an individual or group briefing.

One of the primary purposes of bankruptcy is to discharge certain debts to give an honest individual debtor a fresh start. The debtor has no liability for discharged debts. But in a chapter 7 case, a discharge is only available to individual debtors, not to partnerships or corporations.

Although an individual chapter 7 case usually results in a discharge of debts, the right to a discharge is not absolute, and some types of debts are not discharged. And a bankruptcy discharge does not extinguish a lien on property.

In Tennessee, as in other states, Chapter 7 of the Bankruptcy Code allows individuals, partnerships, and business entities to seek relief from debts. Individuals must pass a means test to qualify, which assesses their income and expenses against median state levels to determine eligibility. A Chapter 7 filing can be barred if the debtor had a bankruptcy case dismissed within the previous 180 days for failure to comply with court orders or if they voluntarily dismissed a case after creditors attempted to reclaim secured property. Additionally, individuals are required to receive credit counseling from an approved agency within 180 days before filing for bankruptcy. While Chapter 7 can lead to the discharge of many debts, giving the debtor a fresh start, not all debts may be discharged, and the discharge does not remove liens on property. Corporations and partnerships are not eligible for debt discharge under Chapter 7, although they can still file for bankruptcy under this chapter.