Numerous Tennessee residents face financial hardships yearly that they feel they cannot recover from. This leaves them looking for relief. While this may not be something individuals in this position want to hear, sometimes relief may only come by pursuing bankruptcy.
What are the types of personal bankruptcy?
There are two types of personal bankruptcy: Chapter 7 and Chapter 13. Those who genuinely lack the income to pay creditors may qualify for Chapter 7, 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 Chapter 7 bankruptcy? By taking a means test, one can find out. A means test is not difficult. 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 falls below the state median, he or she may file for Chapter 7 bankruptcy. If one’s income is higher than the state median but 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.
This means test forms can be obtained from legal counsel or online. Getting these forms in person is advised, as then, help can be provided in filling them out and reading the results correctly. Regardless of whether bankruptcy is the solution, an experienced bankruptcy attorney can assist Tennessee residents struggling financially in figuring out and pursuing their debt relief options.
Contact us today so we can help you with your filing for bankruptcy, Chapter 7
