Every year, numerous Tennessee residents find themselves facing financial hardships from which they feel they cannot recover. This leaves them looking for relief. While this may not be something individuals in this position may want to hear, sometimes relief may only come by pursuing bankruptcy.

There are two types of personal bankruptcy, Chapter 7 and Chapter 13. Those who truly lack the income to pay creditors may qualify for a Chapter 7 — also known as a liquidation bankruptcy. If they do, all qualifying debts will be discharged from their records.

How does one know if he or she qualifies for a Chapter 7 bankruptcy? By taking a means test, one can find out. A means test is not a difficult test. There are no wrong answers. It is just a few forms that compare one’s personal income to the state’s median income level.

If one’s income level falls below the state median income level, he or she may pursue a Chapter 7 bankruptcy. If one’s income is higher than the state median, but his or her disposable income is lacking, a Chapter 7 filing may still be pursued. If one’s financial situation is questionable, it is always possible to petition the court for Chapter 7 relief. If the court disagrees, it may convert the filing to a Chapter 13 petition.

Means test forms can be obtained from legal counsel or on the web. Getting these forms in person is advised, as then, help can be provided in filling them out and reading the results properly. Regardless if bankruptcy is the solution, an experienced bankruptcy attorney can assist Tennessee residents who are struggling financially to figure out and pursue their debt relief options.