You Have Questions About Bankruptcy. I Can Answer Them.

You are considering filing bankruptcy, but, before you do, you need answers to several burning questions. At the Law Office of Ginger C. Cord, PSC., I have thorough knowledge of bankruptcy law and over 20 years' experience helping clients in Kentucky navigate the bankruptcy process. I can provide answers to your pressing questions about Chapter 7, Chapter 13 and other matters concerning bankruptcy.

What Is The Difference Between Chapter 7 And Chapter 13 Bankruptcy?

Chapter 7 and Chapter 13 are two types of bankruptcy. Generally, Chapter 7 is referred to as liquidation bankruptcy because debtors must sometimes forfeit assets and property. However, it also allows filers to discharge most, if not all, of their debts. Chapter 13 is often called reorganization bankruptcy. It allows filers to reorganize their debts and create a payment plan.

Will I Lose All Of My Property?

Not necessarily. While many people who file Chapter 7 must give up some of their property, many assets are exempt from the bankruptcy estate and cannot be collected by creditors. These include clothing, some furnishings and appliances, jewelry up to a certain value, pensions and benefits.

What Are The Steps In The Bankruptcy Process?

The steps for filing Chapter 7 and Chapter 13 are slightly different, but they have many similar steps. First, you must complete two sessions of credit counseling to discuss whether bankruptcy is a good fit for you. Then, you will file bankruptcy with the court in your jurisdiction. This enacts an automatic stay, which prevents creditors from taking collection actions.

The next step is for you and your attorney to meet with a bankruptcy trustee. If you filed Chapter 7, you will begin liquidating nonexempt assets to repay your debts. If you filed Chapter 13, you will construct a repayment plan.

After this, you will complete a financial education course. Once you have completed the course, the court will discharge your eligible debts, and you can begin rebuilding your finances.

Should I Feel Ashamed About Filing Bankruptcy?

Absolutely not. Bankruptcy has a strong negative stigma, but it is nothing shameful. To the contrary, bankruptcy allows consumers to take pride in the fact that they can regain control of their debts. It is a chance for an optimistic fresh start.

Ask More Questions About Bankruptcy

These are only a few frequently asked questions about the bankruptcy process. You may have many more that you wish to discuss with a lawyer. I can answer more of your questions when you make an appointment at my office in Lexington. Call 859-963-2073, or schedule your appointment online.