What's the difference between Chapter 7 and Chapter 13 bankruptcy?
In the state of Kentucky, there are several situations that may warrant filing for Chapter 13 bankruptcy over Chapter 7 bankruptcy. That's why it's important to understand both and how they could apply to your specific circumstances. First, a Chapter 13 bankruptcy is the only choice you have when you find yourself behind on your mortgage or business payments and you want to keep your property at the end of the bankruptcy process. This is because Chapter 13 bankruptcy allows for you to make up any overdue payments over time in an effort to reinstate the original mortgage agreement.
Also, you may be forced to file for Chapter 13 bankruptcy if you have too much income to file for Chapter 7 bankruptcy. Chapter 7 bankruptcy is designed for the vast majority of Kentucky residents who simply want to reduce the heavy burden of debt without paying any of it back. Chapter 7 bankruptcy allows you to receive a fresh start, meaning you will only owe any debt you hold on secured assets for which you choose to sign a reaffirmation agreement. You will also receive immediate protection against any creditor's collection efforts including wage garnishments. Once you file for Chapter 7 bankruptcy, most cases are typically completely discharged in six months or less.
Whatever you're facing, don't let debt control your life.
At the end of the day, you don't have to allow your debts to completely control your life. The team at Bland & Birdwhistell, PLLC has the knowledge and experience you need to outline a plan for you and your family to successfully move forward. Call today for a free initial consultation and find out how we can help you.