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NASHVILLE,TN, June 23, 2014 /24-7PressRelease/ -- The Nashville bankruptcy attorneys at Clark & Washington wish to inform the public of the requirements to file for Chapter 7 bankruptcy. There are two main qualifying factors pertinent to filing for Chapter 7 bankruptcy: income and assets.
In 2005, amendments were made to U.S. Bankruptcy Code Section 707(b) that created the "means test." This test determines whether your income meets the threshold required to file for Chapter 7 bankruptcy. The test's purpose is to keep filers with higher incomes from filing Chapter 7 bankruptcy by measuring monthly disposable income. This is found by deducting specific monthly expenses from your current monthly income. If your gross monthly household income exceeds the median income of a family of the same size in the state of Georgia, then you must complete the "means test" to determine your eligibility. The higher your disposable income, the greater the likelihood that you do not qualify to file for Chapter 7 bankruptcy.
Under Tennessee bankruptcy law, there are certain exemptions that can protect some of your assets, such as your automobiles and your home. There is a homestead exemption that provides a $21,500 protection per person in a specific household. One way to qualify for this exemption is if the value of your home exceeds the value of your mortgage debt. If your home is worth more than your mortgage debt, then during the sale, there is no reason for liquidation because there will be a profit from the sale of your home.
To learn more about Chapter 7 bankruptcy and whether you are eligible, visit http://www.bankruptcyattorneyNashville.com
About Clark & Washington:
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://www.bankruptcyattorneyNashville.com.
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