How to file bankruptcy in Kentucky
Bankruptcy laws have changed in the last several years. In fact, it has become harder to file. People have taken advantage of bankruptcy in the past, which is why it is harder to file. Even though it is harder for those who want to file, it is still possible.
In the state of Kentucky, you can either file a Chapter 7 or Chapter 13. Before you can file, you must do a bit of research. Bankruptcy is to help clear your name of all debt.
An attorney specializing in this type of law will give you the best advice in deciding if filing bankruptcy is in your best interest. To file for bankruptcy, you must have quite a large amount of debt on your shoulders. In bankruptcy cases, Chapter 7 or 13 is more commonly used.
Chapter 7 bankruptcy – A Chapter 7 liquidates all debts a trustee has collected. These debts are usually nonexempt properties. This is done voluntarily or by court order.
Chapter 13 bankruptcy – This allows a trustee to collect a person’s earnings and pay the creditors. This is done by approved debt repayment plan which is court approved.
Chapter 7 and 13 are common chapters in filing for bankruptcy. But there are Chapters 9, 11 and 12. This isn’t mentioned too often in proceedings. An attorney will tell you which chapter to file.
The key to bankruptcy is not to lie or hide in debts. For seven years after filing and being approved, you will not be able to file again. Bankruptcy will help ease the tension and pressure of bill collectors harassing you day in and day out. During the filing process, there are several questions to keep in mind to ask your attorney.
Questions –
Will I get credit again? Credit is rebuilt after bankruptcy is filed and granted.
Is bankruptcy for me? Your attorney can give you guidance as to whether this is the best solution for you.
These are two commonly asked questions from clients to their attorneys.
Debt is easy to gain. Without the help of bankruptcy, getting rid of debt isn’t easy on your own. In the end bankruptcy may be your only solution. Bankruptcy isn’t always the answer to solve their debt problems. This method is often an easy way out for some. Do your research. Filing bankruptcy isn’t cheap. It will cost you a penny or two.