Knoxville Attorneys Clark and Washington Outline Income Limits When Filing a Bankruptcy Claim in Tennessee

    KNOXVILLE, TN, May 13, 2015 /24-7PressRelease/ -- A great number of individuals filing for bankruptcy will be eligible to file for either a Chapter 7 or Chapter 13 bankruptcy. According to the Knoxville bankruptcy experts at Clark & Washington, the type of bankruptcy you can declare is partly dependent on your household income.

If your income is below the median for your geographic location and household size, you can file for Chapter 7 bankruptcy. Most Chapter 7 bankruptcies are no-asset cases, and filing them is a fairly simple and direct process.

However, if your income is higher than the median income for the state, you have to take the means test to find out whether you can file for Chapter 7 or Chapter 13. The means test calculations will determine whether you can afford to pay back a portion of your unsecured debts through a Chapter 13 bankruptcy.

Your average household income is the average of your monthly income over the last six calendar months prior to filing for bankruptcy. Income includes not only wages but also rental and business income, interest and dividends from retirement and pension plans, unemployment income, etc.

If a majority of your debts are not consumer debts, you are exempt from taking the means test. If you are a disabled veteran who incurred your debt during active duty or while performing a homeland defense activity, you are also exempt from the means test.

Take control of your financial life and future by consulting with the seasoned Knoxville bankruptcy attorneys at Clark & Washington. Your first step toward a new financial lease on life begins with their free initial consultation.

To learn more, go to http://knoxville-bankruptcy.com/.

Established in 1983, Clark & Washington is now one of the leading bankruptcy filers in the Southeast. They have locations in Georgia, Florida and Tennessee. Clark & Washington specializes in personal chapter seven and 13 bankruptcy. They offer honest, helpful legal advice to those experiencing financial hardships.

For more information, visit http://knoxville-bankruptcy.com/.

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