Thursday, July 7, 2022
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Chapter 7 Bankruptcy can give you a fresh start


The thought of filing for bankruptcy can be overwhelming. Oftentimes, people are embarrassed that their debt has gotten so out of control. It can be a painful realization once you know that you’re broke, but there is another way to look at the situation. 

Chapter 7 bankruptcy is also known as the “fresh start” bankruptcy.  It can help you put a stop to harassing phone calls from bill collectors and allow you to get back on your feet again.

The basics of Chapter 7 bankruptcy

Under the blanket of Chapter 7 bankruptcy, you can expect to have some big bills charged off. Unsecured debts such as credit card bills, medical bills, and large utility bills can be dismissed. 

It’s important to note that there are some bills that do not qualify for Chapter 7 bankruptcy. These include tax bills, student loans, and child support.

Determine if a means test is needed

In Tennessee, the law requires those who are considered high-income filers to take a means test. The test is used to determine whether or not your income is higher than the median income in Tennessee per the size of your household. Those who make less than the median income and whose debt is mostly unsecured do not need to take a means test. According to the most recent U.S, Census, the median income per household is $53,320 in Tennessee. 

If your household brings in more than the median household, you may still qualify to file for Chapter 7 bankruptcy. This is something to be decided -by the court which is why it is a good idea to seek out experienced legal guidance. Together you’ll be able to determine if Chapter 7 bankruptcy is the right thing for you.

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