Since the recession in 2008, many Tennessee families have had a difficult time meeting all their financial burdens. People have had to rely on credit cards, loans and other financial help to make ends meet. However, over time, you may have found yourself unable to manage and seeking debt relief.

For many debtors a Chapter 7 bankruptcy seems like a good solution. However, you must qualify for a Chapter 7 in order to be eligible for relief. According to the United State Courts, individuals will only qualify for relief if they pass the means test. Under the means test, a person must not make more money than the median income in the state where they live.

In Tennessee, the median income for four people is $65,038. If a family of four makes less than this amount, then they qualify for Chapter 7 relief. If they make more, then adjustments based on allowable expenses — including personal care items, food, clothing and others — may be made to see if they qualify. The median income for a family of three is $55,080. A family of two has a median income of $48,617 in Tennessee. Finally, the median income in Tennessee for one person is $39,891.

Since these numbers frequently change, as does the amount of allowable expenses, this post cannot provide specific information about whether you qualify for Chapter 7 bankruptcy. However, an attorney can provide further information about Chapter 7 bankruptcy and other debt relief measures that are available in a particular situation. People should know, however, that many debt relief options are often available to people searching for a fresh financial start.

Source: United States Courts, “Liquidation Under the Bankruptcy Code,” accessed Aug. 17, 2014