Many people are worried about filing for bankruptcy because of the impact it can have on their credit scores. While it’s true that bankruptcy can drastically decrease your credit score, it’s important to understand that this process can offer considerable financial relief. As such, it’s important to understand first and foremost if you’re eligible for this process, and if you are, what your options are. The following blog explores what you should know about this process and why connecting with a Shelby County, TN bankruptcy lawyer is critical if you want to start your bankruptcy filing.
Are There Limitations on Who Is Eligible for Bankruptcy?
In general, there are a few requirements when filing for bankruptcy. However, the requirements you must meet depend on or determine the chapter you file.
If you want to file Chapter 7, there are requirements based on your income. Typically, when you want to pursue a Chapter 7 filing, you must pass what’s known as the means test. Essentially, this means that in the past six months, you averaged a lower income than other households of your same size in Tennesee. In addition to the men’s test, you have to ensure you haven’t filed for Chapter 7 in the past eight years or Chapter 13 in six years.
If you do not meet the requirements for filing Chapter 7, you can choose Chapter 13 to pursue relief. Typically, the requirements are that you have enough income to meet your monthly payments as dictated in your repayment plan and that you are below the limits for your secure and unsure debts.
In addition to ensuring you meet the income requirements, for both Chapters, you’ll also need to ensure you attend credit counseling with an approved agency within 180 days before you initiate your filing. You must also ensure you wait at least 181 days if you’ve previously attempted to file but your case was dismissed.
What Should I Do if I’m Ready to File?
When you want to file for bankruptcy, it’s important to understand that connecting with an experienced attorney is critical for this process. Unfortunately, filing can be incredibly complicated, and if you try to do so without legal assistance, you’ll find that you can make errors that invalidate your filing. However, when there is an attorney to help you through this process, you can rest assured that your case is in good hands.
As you can see, it’s in your best interest to connect with an experienced attorney from the Arnold Law Firm to guide you through the process. This not only ensures that you are eligible to file, but it also helps to ensure that this process goes as smoothly as possible. When you’re ready to receive financial relief, connect with our firm to realize why so many in and around Memphis have trusted us to guide them through their bankruptcy filings.
