The state of Tennessee enforces the bankruptcy requirements that are stipulated in the U.S. Bankruptcy Act of 2005. Any consumers who wish to initiate this process are required to attend a credit-counseling course which is approved by the state. The objective of this requirement is to prepare consumers for financial management that is needed during and after bankruptcy. Any consumer with Bankruptcy Questions in Murfreesboro TN should consult an attorney before proceeding.
Rutherford County Requirements
In Rutherford County, all consumers who wish to file for bankruptcy should pass the means test for the chapter of choice. This ruling implies that consumers should possess an income level that is either above the median for chapter 13 or below it for chapter 7. The median income for Rutherford County is $39,705 for individuals and $52,654 for families. Alternately, consumers with income levels above the median could also qualify for chapter 7, if they possess high-valued properties or assets.
In basic, chapter 13 requires the consumer to reorganize their debts into a repayment plan of their choosing. The plan should reflect a budget that includes all debts and utilizes all expendable sources of income. The court calculates income based on the six-month period prior to the submission of the claim.
In Rutherford county, the court also calculates household expenses based on this time period. It is advisable for consumers to file after a period within the year in which their household expenses reflected higher costs such as winter. The court will not adjust the household expense allowance due to influxes of costs, which could present a hardship for the consumer. Consumers who have Bankruptcy Questions in Murfreesboro TN associated with household expense allowances should contact an attorney.
Chapter 7 bankruptcy is vastly different from chapter 13. Instead of creating a repayment plan, the consumer surrenders properties and assets to the court for sale. The proceeds are managed by a trustee assigned by the court. He or she distributes these funds to the creditors listed within the bankruptcy claim until all are settled. The consumer receives an exempted value for these items based on the allowances of Rutherford County. If you have any further questions about bankruptcy, you may click to find out more.
