Filing for bankruptcy is one of the most important decisions an individual or family can make when struggling with insurmountable debt. However, for some Kentucky residents, the prospect of a Chapter 7 filing can be daunting considering the sometimes-complicated paperwork involved in the process. The support of an experienced bankruptcy attorney can mean the difference between a difficult and confusing journey and a straightforward track to healthier finances.
Chapter 7 bankruptcy involves the appointing of a trustee by the bankruptcy court to an individual's case. This trustee takes an accounting of all accrued assets and proceeds to liquidate nonexempt assets to pay down creditors. Unsecured debt like credit cards is typically discharged by the court. This differs from a Chapter 13 filing, which is essentially a 3 to 5 year repayment plan approved by the court for an individual or family to pay back debts without being hounded by collections agencies.
But why is an attorney so important to this process? For one thing, bankruptcy is not necessarily the only option available to Kentucky residents in debt. An attorney can help sort out the best option for a struggling individual or family, be that consolidation, restructuring or a bankruptcy filing. If bankruptcy is indeed the best option, an attorney can help to prepare paperwork and other important information.
Chapter 7 bankruptcy can be an incredible tool in the fight against debt. For some Kentucky residents, it can even mean the difference between losing it all and getting back on track. However, it is important to go about it in a responsible way, and that means having as much information and support as possible. With the help of a bankruptcy attorney, Chapter 7 can light the way to financial stability.