In the past, filing for bankruptcy had a negative stigma, but these days, many Louisville residents are filing for bankruptcy as a proactive and responsible way to deal with their debt crisis. This solution satisfies their obligations and allows them to have a fresh financial start. After all, not all bankruptcies are due solely to irresponsible spending. Sometimes, events out of the debtor’s control, like a medical emergency, a job loss or a divorce, has put them in a precarious financial situation.

If a debtor is facing wage garnishments, being harassed by threatening phone calls from debt collectors, in danger of having their vehicle repossessed or facing the possibility of having their home foreclosed, they may want to pursue a Chapter 7 bankruptcy. A Chapter 7 bankruptcy allows a debtor to liquidate their assets to pay back their unsecured debt, which is debt that is not attached to collateral. With their unsecured debt wiped out, it may be possible for a debtor to keep their home and vehicle.

However, filing for bankruptcy is not always a straightforward process. There is a lot of paperwork that must be filed and deadlines. Therefore, it can help to have an attorney by one’s side, if they

are filing for bankruptcy.

For example, the professionals at Kruger & Schwartz take care to walk their clients through the necessary paperwork to file for bankruptcy, so their clients have a solid understanding of what to expect when filing for bankruptcy. They also discuss whether their clients have any alternatives to filing for bankruptcy, and they can help their clients to find a way to handle debts that cannot be discharged through the bankruptcy process. Their webpage on Chapter 7 bankruptcy may be of use to those who want to wipe out debt and step into the future with a clean financial slate.