In order to determine if a person will qualify for the protections offered from Chapter 7 bankruptcy, he or she must carefully review a number of factors related to their financial situation. In order to successfully perform this analysis many individuals in difficult monetary situations turn to trusted bankruptcy and debt relief attorneys in their Tennessee communities. These legal professionals can help their clients work through the topics discussed below as well as other important considerations relevant to their prospective bankruptcy cases.
First, a person interested in filing for Chapter 7 bankruptcy must determine if their income is below the threshold limit for this form of bankruptcy. The individual must tally up their income from a variety of sources, including but not limited to their wages, tips, income from rental properties, and pension income. If their income exceeds the limit then they must attempt to qualify under the Chapter 7 bankruptcy means test.
Second, if a person’s income qualifies them for Chapter 7 then they must investigate if the individual has filed for and received a bankruptcy discharge in the past. A discharge under either Chapter 7 or Chapter 13 that falls too close to the filing of the current bankruptcy matter may disqualify a debtor from pursuing their claim.
Debtors hoping to use Chapter 7 bankruptcy must undergo credit counseling as well as meet other filing requirements in order to begin the process. Though it can help individuals find financial relief, getting into the process of Chapter 7 bankruptcy can be complex. Doing so with the help of trusted bankruptcy attorneys is advisable for individuals who are in need of significant financial assistance.