Helping You Understand Bankruptcy
You are not alone in considering bankruptcy. Thousands of people throughout Kentucky file Chapter 7 and Chapter 13 every year. If you feel overwhelmed and are looking for legal guidance, you can turn to us at Burnett & Griffin, PLLC. We represent clients who face the prospect of filing Chapter 7 or Chapter 13 bankruptcy.
As strong and compassionate advocates, we can help you understand the bankruptcy process and make the best choices for your finances. Here, we have answered some of the questions that we frequently hear about bankruptcy.
Should I feel ashamed of filing bankruptcy?
Even though some believe that there may be a negative stigma around bankruptcy, there is nothing shameful about it. The United States Constitution authorizes the federal government to create bankruptcy laws to allow regular Americans the chance to start over if their debts became too large to handle. When you file for bankruptcy, you get the chance to start fresh with less debt or no debt – and that is something to be proud of.
What is the difference between Chapter 7 and Chapter 13?
Chapter 7 is often known as liquidation bankruptcy. While the idea seems to suggest that a person sells off vital assets, the law provides specified assets exemptions to protect property and allow people to move forward with confidence. Chapter 7 is a streamlined form of bankruptcy that allow those who qualify to obtain a fresh financial start with dignity.
Chapter 13, or reorganization bankruptcy, allows individuals or married couples to reorganize their debts. The process involves an affordable payment plan that runs for three to five years. This differs substantially from some sort of debt consolidation idea. The bankruptcy trustee administers payments to creditors throughout the reorganization plan. At the conclusion of the process, most debts — typically unsecured debts — are discharged, leaving the individual or married couple to emerge without carrying the credit card, medical and other kinds of debt. Often, people are able to make up past due payments on home mortgage loans, taxes, child support in the program and allowing them to obtain freedom from unmanageable debt, while retaining their assets.
My creditor is suing me. Is bankruptcy my only option?
Not necessarily. When a single debt, or an otherwise manageable budget is hampered by the threat of a creditor lawsuit, is out of hand, we may be able to help you negotiate a settlement to resolve the debt problem and avoid litigation and/or bankruptcy.
Will I lose everything if I file for bankruptcy?
Almost certainly not. Many assets are exempt from liquidation, including most articles of clothing, appliances and cars up to a certain value. In fact, most people who file for bankruptcy keep all their possessions.
Do I need a bankruptcy lawyer?
While you do have the option of filing bankruptcy on your own, we do not recommend this. The administrative process is so complex and meticulous that if you make an error, you may end up paying more money than you would have if you had just hired an attorney in the first place. Our lawyers are experienced in guiding people through the process, while helping to ensure the all the requirements are met to allow the bankruptcy process to run smoothly.
Reach Out For More Answers And More Help
You do not have to go through bankruptcy alone. We are the allies you deserve. You can reach out to us to schedule an initial consultation by calling our Elizabethtown office at 270-506-0246 or by using our online contact form.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.