Why File for Bankruptcy in Louisville?

Most people who face financial difficulties go to great lengths to avoid filing for bankruptcy protection. People often avoid bankruptcy because of the numerous myths and incorrect information they have heard about bankruptcy. All too often, significant, valuable, assets are lost along the way as a debtor tries to handle the financial crisis without turning to bankruptcy. If you are dealing with financial problems and you have hesitated to consider bankruptcy as a potential solution, consider the following reasons why you may wish to file for bankruptcy in Louisville.

1. Asset protection. Debts are often secured by assets such as your home or a vehicle. If you fall behind on the payments the lender can foreclose or repossess the asset used as security. Bankruptcy can often protect those assets through the use of exemptions in a chapter 7 or through the creation of a repayment plan in a chapter 13 bankruptcy.
2. Debt elimination. In a chapter 7 bankruptcy most debts are completely eliminated at the end of the process. In a chapter 13 bankruptcy, some debts are eliminated completely while others are paid down over the course of the repayment plan period.
3. Immediate relief from creditors. If your wages are being garnished or you are being threatened with foreclosure or repossession, filing bankruptcy can offer immediate relief from creditors. As soon as you file, the court issues an automatic stay that prohibits creditors from any further attempts to collect on the debt.
4. Fresh start. Most debtors find that they are in a significantly better financial position when the bankruptcy concludes than they were pre-bankruptcy. Typically, your debt to income ratio is significantly better and your credit score goes up after bankruptcy. In addition, potential lenders know that you cannot bankrupt a debt for at least eight years, making you a better credit risk right after bankruptcy.

The only way to know if bankruptcy is the best solution to your financial problems is to consult with an experienced Louisville bankruptcy attorney as soon as possible. Though bankruptcy isn’t the best solution for every debtor, it is often a better option than debtors think it is. Sitting down with a bankruptcy attorney should provide you with a better understanding of bankruptcy in Louisville and the benefits of filing for bankruptcy protection.