Memphis Chapter 7 Bankruptcy Lawyer

Chapter 7 Bankruptcy Attorney Memphis | Atty John E DunlapIn a Chapter 7 bankruptcy, all of your non-exempt assets are liquidated and used to pay your creditors, who will then cancel the balance of most or all of your debts. This is also referred to as a “straight” or “liquidation” bankruptcy.

Not everyone qualifies to file a Chapter 7, particularly those whose disposable income is deemed to be high enough to continue payments on a portion of their debt, as determined by the Chapter 7 Means Test. This test assesses your current monthly income and compares it to your expenses to arrive your “disposable income.”

If this income is deemed sufficient to pay back at least a portion of your debts, you may be required to file a Chapter 13 bankruptcy. But if this income is too low, or if your gross monthly income is below the Tennessee Median Income for your family size (e.g. $63,725 for a family of 4 in 2014), you may be eligible to file a Chapter 7.

However, eligibility does not necessarily mean that Chapter 7 is right for you. For example, if you have a co-debter on a personal debt, bankruptcy will not wipe out his or her obligation to pay – and the creditor may go after this friend or family member. In addition, some debts, such as student loans and tax obligations, are not eligible for dismissal under Chapter 7.

Before you decide to file for bankruptcy, always seek legal counsel and make sure you understand the difference between the various filing methods and their ramifications on you, your family, your business, and any cosigners or guarantors for your debts. Attorney Dunlap has over 20 years experience in bankruptcy law and can explain the process in plain English, while helping you navigate through the experience from beginning to end.

If you’re facing the prospect of bankruptcy, call us today for a free consultation at (901) 320-1603.