Common reasons people file Chapter 7 bankruptcy for debts

When it comes to debt and how to deal with it, it can be so hard to figure out what you need to do and what steps are going to work. Bankruptcy is one way to get rid of debt and to get a clean slate so that you can move forward and change your own life. For those looking for chapter 7 bankruptcy lawyers in KY, the right lawyer can make all the difference.

What is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is also referred to as the liquidation bankruptcy. Chapter 7 allows the debtor to liquidate their non-exempt property to help cover the cost of their debt and to cover what they owe. This is not a type of bankruptcy that is going to work for all people, it is not something that is going to work for all debt, and it is not something that is going to qualify for all people that do owe money.

Chapter 7 is best for those that might have a business for example or that have property that they can get rid of and that they can sell to help cover their debt and to help cover what they owe.

Why Might You File Chapter 7 Bankruptcy?

For those that are thinking of filing bankruptcy, there are a few different reasons that you might decide that chapter 7 is going to work for you. The first is that you do have property that you can liquidate that would help to pay off your debt. Say for instance that you own more than one home, selling one and using it to pay off debt is a great way to get your debt under control and to take care of some of the money you owe.

Another example would be if you had more than one vehicle, if you had property that you could liquidate, or if you have a business that you want to dissolve and you simply want to get rid of what you owe and you want to pay off some of your debt. Liquidating assets is a fantastic way to get your debt under control, however, if you do owe money on those assets that you are thinking of getting rid of, you may not be able to use them for liquidation.

Overall, chapter 7 is a great option if you do have something that you can sell to pay off your debt. When filing a chapter 7 bankruptcy you are going to be appointed a trustee that will help handle the liquidation of assets as well as the dispensation of the money to your creditors. This will help ensure that the right people get the money and that you simply do not have to worry about it.

What Can An Attorney Do To Help?

Your attorney is going to be able to do a ton for you when it comes to bankruptcy. The first thing they are going to be able to do is to help you figure out what type of bankruptcy is going to work best for you. Should you opt for a chapter 7, is chapter 13 better, and so on. They can speak with you about what type of debt you have, what type of assets you have and what you can do to pay back that debt.

They can also help you figure out how to proceed and how to go about filing. They can help you to get your paperwork started, to get you through the entire bankruptcy process, and they can help you get your case taken care of and get your bankruptcy off to a good start that you can actually handle and that you can work through.

Bankruptcy is hard, it is difficult to handle and it can be so hard to figure out on your own. With the help of an attorney you can work through the difficulties of bankruptcy and you can figure out what is going to work best for you, you can figure out how to proceed, and you can figure out how to deal with what you are taking on. Your attorney is going to be able to help explain things, help you handle issues that pop up, and they are going to be able to support you through the bankruptcy process and through the problems that might occur as you deal with your bankruptcy and as you deal with what is on the line.

Related Articles

Leave a Reply

Back to top button