Filing for bankruptcy can be a difficult time for a Kentucky resident. Besides the stress of dealing with creditors and debt collectors, there is the fear of not being able to get through the legal process. Add to this that the individual needs to decide what kind of bankruptcy case to file, and it can be a traumatic experience for anyone. One thing that may help ease that stress is to know, ahead of time, what will be expected in a bankruptcy process.
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.
Louisville business owners very often become entrepreneurs not only because they have an interest in the type of business they are running, but also because they wish to have the independence that comes from being their own bosses. This means they have a lot freedom in how to run their businesses, but also much responsibility when it comes to fulfilling the businesses' obligations. Sometimes, whether through bad luck, a mistake, or other circumstances, a business finds itself in a situation in which it cannot realistically meet its obligations. It is in these situations that owners may contemplate filing a business bankruptcy case.
Making the decision to file for bankruptcy is stressful. Deciding what type of bankruptcy to file can be equally as stressful. Not everyone is able to file for all forms of bankruptcy, and while some may wish to pursue Chapter 13 and some may want to take a different route, it's important to understand what qualifies a person for such an action.
Filing bankruptcy is a big step in your financial life, one of the most important decisions you will ever make. You may have preconceived notions about filing that lead you to wonder how good an idea it is.