A lot of individuals and families are struggling financially in this current economic climate. So there is nothing to be ashamed of if you feel driven to file for consumer bankruptcy. If you take the right measures and all goes according to plan, the payout may be great financial relief and freedom you have not felt in a long time. With all that being said, please follow along to find out how a consumer should file for bankruptcy and how a proficient Louisville, Kentucky consumer bankruptcy lawyer at Schwartz Bankruptcy Law Center can help you through this process.
As a consumer, what are my bankruptcy options?
For starters, you may choose between two options for your consumer bankruptcy filing. Namely, there is Chapter 7 and Chapter 13 consumer bankruptcy.
Now, Chapter 7 consumer bankruptcy is also coined as liquidation bankruptcy. This is because, with this option, you may allow your bankruptcy trustee to liquidate your assets. Your trustee may then take the funds from these liquidated assets to pay your outstanding creditors. However, you may rest assured that your trustee will not take possession of most of your essential assets, such as your house, car, household items, clothing, retirement accounts, life insurance policies, etc. So, this option may work best for you if you do not own many luxury items that will inevitably be taken away.
On the other hand, Chapter 13 consumer bankruptcy is commonly referred to as the wage earner’s bankruptcy. This is because, with this option, you may set up a three to five-year plan to pay back your outstanding creditors. All the while, you may retain all your property. You must understand that only certain consumers qualify for this bankruptcy type. Specifically, you must have combined secured and unsecured debts of less than $2,750,000. Also, you must earn enough to have disposable income to contribute to your repayment plan.
As a consumer, how can I file for bankruptcy?
Regardless of whether you qualify or prefer Chapter 7 or Chapter 13 consumer bankruptcy, you may be expected to follow a similar procedure. Without further ado, the bankruptcy process in the state of Kentucky generally follows the below sequence of events:
- Gather relevant financial documents.
- Attend a credit counseling course and seek further advisement.
- Fill out and file your Chapter 7 or Chapter 13 consumer bankruptcy petition.
- Turn over your relevant financial documents to the Kentucky bankruptcy court.
- Attend the mandatory 341 creditor’s meeting.
- Complete a debtor’s education course and file your certificate.
- Receive a debt discharge upon the completion of your bankruptcy proceedings.
If you find yourself at a crossroads, please seek the sound advisement of a talented Louisville, Kentucky consumer bankruptcy lawyer. Someone at Schwartz Bankruptcy Law Center will stand by your side at a moment’s notice.
