Chapter 7 Basics

Posted in: General Bankruptcy

Do you need a lawyer in the Knoxville area to help you with a Chapter 7 bankruptcy?  Chapter 7 is the most common bankruptcy filed by individuals with primarily consumer debt. Chapter 7 is sometimes referred to as the “fresh start” bankruptcy option.  Many people who qualify for a Chapter 7 can have their unsecured debt discharged without losing any assets.  How do I know if I qualify for a Chapter 7?  Generally, there are two ways to qualify for Chapter 7 bankruptcy. The first is to earn below the median income for a Tennessee family of equivalent size. Income will include any earnings from employment or other sources, including contributions to household expenses from others.  Even if you make over the median income for a family your size, that does not necessarily mean that you won’t qualify for Chapter 7. Under the Bankruptcy Code, you may still qualify depending on your monthly expenses and the amount of surplus income that you have left over.  Your attorney will use the information you provide about your income and expenses to complete a Means Test to determine if you are likely to be successful in filing a Chapter 7 bankruptcy.  Do you need a Knoxville bankruptcy attorney for a Chapter 7 bankruptcy?  Call us today for a free consultation with an attorney.