If you are considering a Tennessee bankruptcy, you are likely feeling overwhelmed and stressed by the amount of debt you have. Some people also worry that they might not have enough of a problem to qualify to file for bankruptcy. At Rothschild & Ausbrooks, PLLC, we understand that filing for bankruptcy can be complex and intimidating. However, many people who are considering filing often find that they are in fact qualified to do so.
The means test is generally used to determine whether or not you qualify for bankruptcy and if so, whether you qualify for Chapter 7 or Chapter 13. According to NerdWallet, the test takes a few different factors into consideration. For starters, it will look at your debts and compare them to how much income you have. It will also compare your income to what the median income is in your state. The size of your family may also be factored in.
Any money that is left over each month after your bills are paid is considered disposable income and is money could be used to pay down your debts. If you have no disposable income or very little disposable income, you may qualify to file for Chapter 7. If you have enough to make regular payments toward your debts, you will likely qualify for Chapter 13.
You will almost certainly have to produce proof of your income and expenses, so be prepared to provide documentation. For more information about whether or not you qualify to file for bankruptcy, please visit our web page.