Should I File for Bankruptcy?
When the national economy declines, as it has recently, so can people’s finances. Mounting debts caused by any number of factors — long-term unemployment, high credit card fees, college or medical bills — can add terrible stress to your life. If this situation persists and there doesn’t seem to be any end in sight, consulting a Louisville bankruptcy lawyer may be your best option.
Filing for bankruptcy is not something one does casually. For many people, simply reestablishing priorities and formulating a new budget can ease the pressures of debt. Financial advisors can help in this regard. However, as more than 3.7 million Americans found out in 2011, sometimes hiring a lawyer to file for bankruptcy is the best way to free you of debt.
In cases involving people with significant debt, lawyers may choose Chapter 7 bankruptcy, or “liquidation.” Here, you turn over your non-exempt property to a trustee, who converts it to cash, distributes it to your creditors and thereby relieves you of debt. However, if you want to keep certain assets and your income is above the state median, skilled Louisville bankruptcy lawyers may work out a repayment schedule under the provisions of Chapter 13 bankruptcy. With Chapter 13, you can pay off your creditors within three to five years. Chapter 13 is preferable if you have non-exempt property that you want to keep. However, in order to qualify for Chapter 13, your financial situation would need to meet the criteria of a Means Test as prescribed by Kentucky state law.
If your life is being adversely affected by debt, the Law Offices of John Schmidt & Associates can get you on a course of action that can give you a fresh start.