Chapter 7 Bankruptcy in Memphis, Tennessee

Chapter 7 bankruptcy allows eligible Memphis residents to eliminate unsecured debts such as credit cards, medical bills, and personal loans. Most Chapter 7 cases filed in the Western District of Tennessee are completed in approximately 3 to 4 months.

What Is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is a form of debt relief designed to give individuals a financial fresh start. In a Chapter 7 case, qualifying debts are discharged, meaning you are no longer legally required to pay them.

Chapter 7 is commonly used by individuals in Memphis who:

• Have high credit card or medical debt
• Are experiencing wage garnishment
• Have limited disposable income

Who Qualifies for Chapter 7 in Tennessee?

To qualify for Chapter 7 bankruptcy in Memphis, you must pass the Chapter 7 means test, which compares your household income to the Tennessee median income.

You may qualify if:

• Your household income is below the Tennessee median, or
• You pass a means test calculation showing insufficient disposable income

Eligibility also depends on:

• Prior bankruptcy filings
• Asset exemptions under Tennessee law

Tennessee Chapter 7 Income Limits (Means Test)

Income limits vary based on household size. The means test uses gross household income averaged over the last six months.

If your income exceeds the limit, you may still qualify after allowable expense deductions or may need to consider Chapter 13 bankruptcy instead.

How Much Does Chapter 7 Bankruptcy Cost in Memphis?

The total cost of Chapter 7 bankruptcy typically includes:

• Court filing fee: $338
• Attorney fees: Vary depending on complexity
• Credit counseling courses: Required before and after filing

Most Memphis bankruptcy attorneys offer payment options or flat-fee pricing.

How Long Does Chapter 7 Take in Memphis?

A typical Chapter 7 timeline includes:

• Filing of the case
• 341 meeting of creditors (about 30–40 days after filing)
• Discharge issued approximately 60 days after the meeting

Most cases are completed within 3–4 months.

What Debts Are Eliminated in Chapter 7?

Chapter 7 bankruptcy can eliminate many unsecured debts, including:

• Credit card debt
• Medical bills
• Personal loans
• Payday loans
• Utility arrears

What Debts Are NOT Eliminated?

Some debts generally cannot be discharged, including:

• Recent taxes
• Child support and alimony
• Most student loans
• Criminal fines

Chapter 7 vs Chapter 13 Bankruptcy in Memphis

Chapter 7:

• Faster (3–4 months)
• No repayment plan
• Income-based eligibility

Chapter 13:

• 3–5 year repayment plan
• Allows catching up on mortgage arrears
• Available to higher-income filers

(Internal link anchor: Chapter 13 bankruptcy in Memphis)

Can Chapter 7 Stop Wage Garnishment in Memphis?

Yes. Filing Chapter 7 bankruptcy immediately stops wage garnishment through the automatic stay, which goes into effect as soon as the case is filed with the bankruptcy court.

Will I Lose My Property in Chapter 7?

Tennessee bankruptcy exemptions protect many common assets, including:

• Household goods
• Retirement accounts
• Certain equity in vehicles

Whether property is protected depends on asset value and exemption limits.

Memphis Bankruptcy Court Information

Chapter 7 cases filed by Memphis residents are handled in the:

United States Bankruptcy Court
Western District of Tennessee
Serving Shelby County and surrounding areas

Do I Need a Bankruptcy Lawyer in Memphis?

While it is legally possible to file bankruptcy without a lawyer, most individuals benefit from legal representation due to:

• Complex exemption rules
• Means test calculations
• Risk of case dismissal

Written by:

Memphis bankruptcy attorney licensed in Tennessee, representing individuals and families in Shelby County.

For more information about the differences between Chapter 7 Bankruptcy and Chapter 13 Bankruptcy click here.

^*For those who qualify under federal law.