You might not think about bankruptcy as something you have to qualify for, but that is how it works in most cases. At Jimmy E. McElroy & Associates, we find that most people in Tennessee simply are not prepared for how exclusive the process is, especially when it comes to Chapter 7.
However, it is possible to get debt relief in most situations. Even if it were not your first choice, some form of bankruptcy would probably be available to you if you were in dire financial straits. If you did not qualify for a Chapter 7 request, for example, the judge might ask you to convert your filing to Chapter 13.
Liquidation could provide a relatively debt free blank slate for those who qualify. However, there are strict income requirements you would probably have to meet to have the court sell off your property to settle your debts. Basically, the lot is written to exclude people who are able to pay back debts without selling assets.
When you read the US Courts’ explanation of eligibility, it is easy to get lost in the details and technical language. Essentially, you would supply a monthly income and expense average, then compare that to your debt. After the Court considered any special situation you might have with regard to expenses or finances, you would receive a decision on whether you could go forward with the process.
Our clients sometimes come in thinking that bankruptcy is a last resort. Beyond that, there is also a popular myth that certain types of bankruptcy are more severe than others. In fact, the system is organized to give you the best possible formal debt relief option for your unique situation. That is why it is often critical to look at all of the details of your case before you proceed. Please read more at the main site.