Best Bankruptcy Lawyers in Cookeville, TN

Understanding Chapter 7 Bankruptcy Qualifications Are you drowning in debt and unsure of how to find relief? Chapter 7 bankruptcy may be a viable option for those seeking a fresh start financially. But who exactly qualifies for Chapter 7 bankruptcy? At Kenneth C. Rannick P.C., we assist the Tennessee public with bankruptcy matters, including determining eligibility for Chapter 7. Let's dive into the qualifications and requirements for filing Chapter 7 bankruptcy. To qualify for Chapter 7 bankruptcy, individuals must pass the means test, which compares their income to the median income in their state. If your income is below the median income level, you automatically qualify for Chapter 7. However, if your income is above the median level, additional calculations are performed to determine eligibility based on expenses and disposable income. Another key qualification for Chapter 7 bankruptcy is that individuals must not have filed for bankruptcy under Chapter 7 or Chapter 13 within the past eight years. This restriction ensures that those who truly need debt relief are able to access it through Chapter 7. Additionally, individuals must not have had a previous bankruptcy case dismissed within the past 180 days due to willful failure to appear in court or comply with court orders.