Cleveland Chapter 7 Bankruptcy Attorneys

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Tennessee Lawyers For Credit Card Debt Relief

One of the most effective forms of relief from credit card debt, medical debt and other forms of debt is Chapter 7 bankruptcy. In this type of bankruptcy, which is frequently referred to as straight bankruptcy, you discharge most — if not all — of your debt. You get a fresh start.

If you are considering bankruptcy, you are not alone. More than a million people in the U.S. will file Chapter 7 bankruptcy this year.

A Fresh Start In A Matter Of Months

From the initial filing to the final discharge of your debts, the Chapter 7 process takes about four months in most cases. At the law firm of Richard Banks & Associates, our attorneys will be with you every step of the way, putting our experience to work for you. We have been serving people throughout Tennessee and North Georgia since 1974.

When you choose our law firm, your case will be led by board-certified bankruptcy specialist Richard L. Banks. Board certification is granted only to those who have dedicated their careers to bankruptcy and demonstrated extensive knowledge in the area of the law. Consider it your proof that you are in good hands.

Filing Chapter 7 immediately stops:

Creditor harassment
Foreclosure and repossession
Bank levies and wage garnishment

Most people who file Chapter 7 keep most of their property. If you have secured debts, such as mortgaged property and financed cars, you can continue to make the scheduled payments or return the property to the securing party. For many people, relief from credit card bills and other unsecured debts paves the way to credit repair and provides breathing room to catch up on payments on secured items.

How Do I Qualify For Chapter 7?

Eligibility for Chapter 7 bankruptcy in Tennessee or North Georgia is based on a means test. To qualify, the filing party must satisfy the two-part test.

The first part of the means debt looks at the filing party’s average monthly income for six months before filing for bankruptcy. This is then compared to the median family income in the filing party’s state. If the filing party’s income is less than or equal to the state’s median income, they qualify to file for Chapter 7 bankruptcy. Various sources of income are considered, while other sources are excluded, so it is helpful to know which income is considered and which is not.

The second part of the means test evaluates if the filing party earns more than the median income in their state. The second part of the test examines the filing party’s income, after deducting allowable expenses, to determine if the filing party has enough disposable income to repay some of their unsecured debt through the Chapter 13 bankruptcy process, in which case the filing party does not qualify for Chapter 7 bankruptcy but may qualify for a Chapter 13 bankruptcy repayment plan. The filing party may also be able to establish special circumstances if they do not qualify for Chapter 7 bankruptcy, including recent unemployment, unusually high rent or a serious medical condition.

Income Is An Important Deciding Factor

To qualify for Chapter 7 bankruptcy, the filing party will typically have to meet the means test used by the bankruptcy court to determine who is eligible to file for Chapter 7 bankruptcy. If the filing party’s income is too high, they may be unable to file for Chapter 7 bankruptcy. However, they may still be able to file for Chapter 13 reorganization bankruptcy protection instead. The means test looks at the filing party’s average monthly income six months before filing for bankruptcy and compares it to the median income in the filing party’s state.

If the filing party’s income is higher than their state’s median income, they may not qualify for Chapter 7 bankruptcy. A variety of different sources of income can be considered, so it is crucial to be familiar with the list. If the filing party’s income is higher than the median income in their state, they may still qualify for Chapter 7 bankruptcy if they meet the second part of the means test.

The bankruptcy court will seek to determine if the filing party can repay some of their unsecured debts after they have paid all of their allowed expenses, which are generally everyday expenses. If the court determines the filing party can repay some of what they owe, they may need to consider Chapter 13 bankruptcy as an alternative.

Still Have Questions?

The circumstances of each potential bankruptcy are different. Moreover, the filing party will be familiar with other disqualifying considerations. Considering the complexity of this process, it is essential to speak with board-certified bankruptcy specialist Richard L. Banks. If Chapter 7 bankruptcy does not make sense in your situation, we can assist you with filing Chapter 13. Learn more at our Chapter 7 practice center.