Both Chapter 7 & Chapter 13 personal bankruptcy can eliminate overwhelming debt. Debts may include credit card debt, bank loans, medical bills, most court judgments, and deficiencies on repossessed vehicles. While struggling under the weight of financial strain can be a stressful process, some individuals in Kentucky may find that choosing a path for relief could also seem intimidating. Filing for bankruptcy can improve your financial situation, but it also has a major impact on many aspects of your life. One of the biggest concerns of those considering bankruptcy is how filing will affect their possessions but losing possessions may not always be the case.
Chapter 7 Bankruptcy
Liquidation of Assets is the aspect of bankruptcy that frightens most people. While this process may call for the liquidation of certain assets, this does not necessarily mean a person will lose everything. Chapter 7 is a popular option which can be summarized as follows…
- It provides asset protection
- Not all assets are liquidated
- Chapter 7 takes 3 months to obtain a discharge
- Proceeds of liquidated assets are used to pay creditors
- It allows the discharge of personal debts, medical bills, loans, credit cards
- Collection calls by creditors are stopped
- Chapter 7 bankruptcy could play a vital role in helping a person make informed decisions about his or her financial future.
Chapter 13 Bankruptcy
You may have experienced a financial hardship and are considering your options. Thankfully, bankruptcy is a legal option that provides debt relief and hopefully less stress and more sleep. With Chapter 13 bankruptcy, a person might not need to face the possibility of liquidation assets. Instead, you may be able to reorganize financial obligations and develop a plan to pay back certain amounts of debt. Provided you are able to follow the terms of the payment plan, your assets may be protected.
Consult An Attorney To Decide What Is Best For Your Situation
Deciding whether to declare bankruptcy is very difficult and should never be taken lightly. It affects your future credit, your reputation, and your self-image. But it can also improve your short-term quality of life considerably, as the calls and letters stop. In addition to deciding whether to file, you’ll also want to consider which type of bankruptcy is right for you (typically either Chapter7 or Chapter 13). Understanding how assets will be handled during bankruptcy may be essential to choose the best course. Since this can be somewhat complex, a person in Kentucky could benefit from consulting an attorney for guidance prior to making decisions. An attorney can help you developed a plan to seek relief through the necessary channels and assist you through every stage of the process.
We are committed to helping families resolve legal challenges and get back to their lives. We offer the guidance and support that you will need when you are involved with the legal system.
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About Helmer Somers Law
Helmer Somers Law helps individuals and businesses navigate the complex system of rules that accompany all legal situations. We are licensed to practice in both Kentucky and Ohio and offers flexible, affordable payment terms for our services. We welcome the opportunity to earn your trust and become your lawyer for life! It’s a fact of life in the modern world. There comes a time for virtually every adult American when the services of a competent, dedicated lawyer are required. Circumstances such as divorce, bankruptcy, estate planning or an income tax audit demand that your rights be protected, and your long-term interests advocated for with diligence and perseverance. When you call Helmer & Somers Law, you can rest assured that they will be.