How do I know if I will qualify for Chapter 7 Bankruptcy?

To determine if you are eligible for Chapter 7 Bankruptcy in Tennessee, there are certain criteria that you must meet. Firstly, you will need to pass the Means Test by showing that your current monthly income does not exceed the median income for a household of the same size in your state. If your income does exceed this amount, you may still be able to file for Chapter 7 Bankruptcy if you have certain expenses that reduce your disposable income in a way that meets thresholds set by the court. If you pass the Means Test, you must then prove to the court that you do not have the means to pay your creditors. You will need to provide a full list of your assets and liabilities, which can include checking/savings accounts, retirement accounts, life insurance policies, motor vehicles, and real estate. You will need to prove that your assets are not worth enough to cover your liabilities. Finally, if you have filed for Chapter 7 Bankruptcy in the past, you may not qualify. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 limits the amount of time between filing Chapter 7 Bankruptcies. Usually, it is eight years for a second Chapter 7 filing. If you are able to meet all of these criteria, then you will likely qualify for Chapter 7 Bankruptcy in Tennessee. To be sure, it is recommended that you consult a legal representative who can assist you in the process.

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