Is Chapter 7 or Chapter 13 bankruptcy best?

On Behalf of | Jun 4, 2023 | Chapter 13, Chapter 13 Bankruptcy, Chapter 7, Chapter 7 Bankruptcy |

For Tennessee residents struggling to overcome financial problems, there may be several debt relief options available. Debt solutions are not one-size-fits-all, however. For example, when people file for bankruptcy, they must choose the program that best fits their needs and qualifications. It is possible, for instance, to qualify for Chapter 7 but not Chapter 13 and vice versa.  

Determining which program is the better fit can be tricky, which is why it is always a good idea to rely on an experienced bankruptcy attorney for support. There are guidelines regarding eligibility that must be reviewed. The good news is that bankruptcy can be a valuable financial tool that enables a person to resolve debt and begin restructuring his or her finances for the future.  

Chapter 7 might be the best bankruptcy choice if these issues are relevant 

Here are the basic eligibility requirements for Chapter 7 bankruptcy:  

  • Income is below the state median level 
  • Have not filed for the same program in the past eight years 
  • Have not had a bankruptcy case dismissed in the past 180 days 

If these qualifications are not met, then Chapter 13 might be a better choice. Requirements for that program include having a reliable, consistent form of income. A petitioner must also be up to date in paying taxes. 

Explore all options before determining a course of action 

It’s helpful to consult with a bankruptcy attorney before filing a petition for debt relief. The attorney can review a particular case and make recommendations as to which program best fits a client’s needs. The lawyer can also be on hand to help resolve any legal complications that may arise while navigating the system.  


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