The loss of your job, a change in your income, an unexpected emergency or any other number of factors may cause you, or others in Tennessee, to struggle with debt. If you are dealing with financial challenges, then you may have considered filing bankruptcy. Sometimes, however, it can be difficult to know if Chapter 7 bankruptcy is the right option for you.
Not everyone qualifies for Chapter 7 bankruptcy. Therefore, filing for this type of protection is only a good option for you if you meet the eligibility requirements. Among other qualifications, your income must be below the state median in order to file Chapter 7 bankruptcy, according to the United States Courts. If your income is over the median, you may still qualify if you are able to pass the means test. Other bankruptcy and debt relief options do not have income requirements, however. As such, if you are not eligible for Chapter 7 bankruptcy, then another option may be better suited for you.
Unlike other forms of bankruptcy, you do not have to make payments on your debts after filing for Chapter 7 bankruptcy. As such, this option may work better for you than other types of filings if you do not have regular income. It is important for you to keep in mind, however, that while you do not have to make payments, some of your non-exempt property may be liquidated during a Chapter 7 bankruptcy. Thus, you may wish to consider other bankruptcy options if you have extravagant assets, which may not be exempt.
Depending on your situation, you may need to regain control of your finances as quick as possible. Under most circumstances, Chapter 7 bankruptcies are finalized within three to four months. Other options, including Chapter 13 bankruptcies, may take much longer. Chapter 13 repayment plans are typically spread out over a three-year, or five-year, period.
This post has provided an overview of some circumstances, which may make filing for Chapter 7 bankruptcy the right option for you. However, you should remember that each situation is unique. Consequently, you should take this post only as general information, and not consider it legal advice.