If you have found yourself struggling to make ends meet, you are not alone. Some of your Louisville neighbors have probably experienced the same kinds of financial hardships. If you are caught in an endless cycle of debt that you can never seem to get ahead of, it might be time to start exploring your options. While debt counseling might be enough to help some people, others need to take more serious measures.
Some people who need to seek bankruptcy protection will file for Chapter 7. This is known as liquidation bankruptcy because your nonexempt assets will be handed over to the bankruptcy trustee and liquidated with the proceeds going to pay your creditors. If there are balances left on any of your accounts after this, those will be forgiven when the case is discharged.
People who file for Chapter 13 bankruptcy must take the time to think about how this is going to impact their finances. There are three primary concerns that you might have when you make this decision. First, you know that your debts will be rolled into one payment. Second, you will have to make payments to the bankruptcy trustee. Third, you will need to live without credit for a while since you can't take on new credit without the bankruptcy court's permission.