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chapter 7 bankruptcy Archives

What factors may prevent me from filing for Chapter 7 bankruptcy?

As readers of this Louisville legal blog may know, bankruptcy is a legal process that allows a person to manage their debts, pay off financial obligations and set themselves up to emerge from the process with a clean monetary slate. There are two main types of bankruptcy that individuals may choose to pursue to take control of their debts - Chapter 13 bankruptcy and Chapter 7 bankruptcy. This post will briefly discuss Chapter 7 bankruptcy and will focus its content on the factors that may limit a person's ability to use it as a means of achieving financial freedom.

How long may Chapter 7 bankruptcy affect credit?

Many Kentucky residents may be aware that filing for any kind of bankruptcy, especially a Chapter 7 liquidation, will affect one's credit rating. But what is a credit rating exactly? The credit rating is a number used by many banks and other lenders to determine whether an individual is a good risk to lend money to. What this means is that though lending money to anyone is always a risk, people who have a history of paying their debts on-time and in full are seen as more likely to continue to do so in the future. Thus, banks and other institutions are more likely to extend better interest rates and higher available credit lines to such people.

Assistance navigating the Chapter 7 bankruptcy process

Finances are not easy to manage. Sometimes, the harsh realities of life throw curve balls that can send your financial wellbeing into a spiral. In these stressful situations, it can seem like nothing will help to bring you above water once again. There are, however, methods of dealing with massive debt and financial concerns that can help get you back on your feet. Chapter 7 bankruptcy is one such option.

Don't navigate the Chapter 7 bankruptcy process alone

Slipping further and further into debt is an awful and stressful feeling. What may being as a few simple bills can quickly spiral out of control, leading to every waking moment being consumed by the pressure and desire to escape the financial burden you've found yourself in. Instead of living in this financial pressure chamber for too long, however, there are options of erasing debt such as Chapter 7 bankruptcy. It's important to understand what this process entails before starting down the path.

What is "credit counseling" in a Kentucky Chapter 7 bankruptcy?

A previous post here examined the basics of the "debtor education course" that all Chapter 7 bankruptcy filers must complete before receiving a discharge of their debts. At that time, we mentioned the fact that the course should not be conflated with "credit counseling," which is also mandatory, but is a different requirement entirely. Our readers need to know about credit counseling as it is under a Chapter 7 bankruptcy.

What is the Kentucky Chapter 7 debtor education course?

Filing a Chapter 7 Bankruptcy is not an easy decision. There may be many reasons why Kentucky residents do not wish to file such a case, including the affect it may have on a person's credit rating and the perceived stigma that can sometimes be associated with such a filing. However, in many cases, the outcome of having debts discharged is worth the time and hassle, and other negative consequences that may result.

Chapter 7 bankruptcy is a viable option, but not the only option

The economic downturn 10 years ago did a lot of damage to many people's lives in Kentucky and around the world. Whether it was loss of retirement funds or the repossession of a home or vehicle, the experience has changed the way many individuals approach the ideas of wealth, income and bankruptcy. The hesitancy to use bankruptcy as an option to create a clean slate has eased over the past few years.

Dealing with creditors before filing a bankruptcy petition

One of the most unpleasant aspects of a difficult financial situation faced by Kentuckians is dealing with the collection efforts of creditors. While many debt collectors are honest and law-abiding, some resort to tactics that can only be described as harassment. A far-reaching federal statute intended to stop creditor harassment may offer some protection before the last resort of bankruptcy.

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