In Tennessee and beyond, many people are struggling to stay afloat financially. Perhaps someone in your household lost a job in recent years. Or, maybe you’ve had unexpected medical bills that have sparked a severe financial crisis. Filing for bankruptcy is a valuable tool that often helps alleviate debt and lay the groundwork for restored financial stability. Chapter 13, in particular, is often a good fit for those who have reliable income.
Chapter 13 bankruptcy is known as a wage earner’s debt relief
Each bankruptcy program has its own set of eligibility requirements, which you must fulfill before submitting an application. Chapter 13 bankruptcy provides restructured payment support to people who are having trouble making loan payments on time. In order to qualify for Chapter 13, you must demonstrate that you have a reliable form of income that is at or above the median level in your state.
To determine if your income level meets the qualifications, you must take a means test. This test compares your current income with incomes in similar-sized households throughout the state. If your income is below the median level, you would be ineligible for Chapter 13 bankruptcy; however, you might qualify for a different program.
Most financial crises are temporary
Facing a financial crisis is stressful, especially if you believe you’re at risk for losing your home to foreclosure. Filing for Chapter 13 bankruptcy may be a viable option in your case. Richard Banks & Associates, in Tennessee, is a legal team that is well-versed in bankruptcy laws. By scheduling a meeting, you can take the first step toward exploring debt relief options and, perhaps, finding a solution to your current financial problems.