What to know about a Chapter 7 Bankruptcy in Louisville
Are you struggling to pay your debts each month? Do you run out of money each month before you can pay your credit card bills, medical bills and personal loans? If so, you will probably benefit from filing a Chapter 7 bankruptcy. Through a Chapter 7 bankruptcy, you can get rid of most, if not all, of your unsecured debt.
You can find relief from overwhelming debt so you can recover from unemployment, divorce, medical emergency or unwise money management. Regardless of why you are in debt, Chapter 7 bankruptcy can help you end your struggles with debt and find a fresh start.
Chapter 7 Bankruptcy – The Liquidation Bankruptcy
Many people are frightened of filing Chapter 7 bankruptcy because they believe they will lose all of their assets. While Chapter 7 bankruptcy is a liquidation, very few Chapter 7 cases filed in Kentucky are “asset” cases. An asset case is a case in which the bankruptcy trustee seizes assets, liquidates those assets and distributes the proceeds to the debtor’s creditors. Most Chapter 7 cases are “no asset” cases meaning that the debtor retains all of his or her property.
A Chapter 7 trustee reviews the assets of the debtor to determine if any of the assets have equity above liens or exemptions. Bankruptcy exemptions allow debtors to protect the equity in specific assets from the trustee and the creditors. In most cases, the bankruptcy exemptions will cover the equity in your assets remaining after deducting any liens on the property. The trustee will abandon the assets as having no equity for the bankruptcy estate and you will retain all of your property while getting rid of your debts.
How Long Does a Chapter 7 Bankruptcy Take?
Once your Chapter 7 bankruptcy case is filed, it will take between four and six months to receive your bankruptcy discharge and the case to be closed provided it is a no asset case. If the trustee does sell an asset, your case could remain open for approximately a year but you will not need to do anything further after your hearing. The trustee will take care of filing the appropriate forms, liquidating the asset, distributing the funds and filing a final report.
In you are struggling to pay your debts with the little amount of money left over each month after you pay your living expenses, a Chapter 7 bankruptcy case can help you. Your bankruptcy attorney can advise you if any of your assets could be in jeopardy and help you devise a bankruptcy strategy that is right for you. In the few cases where a trustee seizes an asset to sell, in most cases, the debtor knows in advance and the debtor has made the decision that losing an asset is worth getting rid of his or her debt so that he or she can have a fresh start to rebuild his or her financial well-being.
Contact an Experienced Louisville Bankruptcy Attorney
We’ve Helped Thousands of KY Families, we can help you!
The bankruptcy attorneys of Musselwhite Meinhart & Staples, PSC have over 50 years of combined legal experience. We help people find affordable solutions to their debt problems. We represent clients throughout Central Kentucky.
Contact us at our Radcliff and Elizabethtown Office in Hardin County at (270) 351-6032, or toll-free at 1-800-754-HELP to schedule a free bankruptcy consultation with one of our attorneys. You may also contact our office through our convenient online contact form.