Answering Your Questions About Bankruptcy
There are many misconceptions about bankruptcy that add shame and stigma to an already painful process. If you are considering filing bankruptcy, you should know that there is nothing to be ashamed of.
At Richard M. Rawdon, Jr. Attorney at Law, we want to help clear the air surrounding bankruptcy by answering several questions our clients often ask.
- What are Chapter 7 and Chapter 13?
Chapter 7 and Chapter 13 bankruptcy are the two most common types of bankruptcy.
Chapter 7 is when someone has outstanding debts that they cannot repay. In this form of bankruptcy, you will no longer owe debts like credit card bills, medical bills and some loans.
Chapter 13 is for people who need to create repayment plans to pay their creditors over a period of three to five years. At the plan’s completion, the rest of your debt is eliminated.
- Will I lose all my things if I file bankruptcy?
You will not have to give up all your possessions just because you file bankruptcy. Under Chapter 7, you may need to sell some of your expensive assets like cars and real estate to repay your creditors. But you will not be left empty-handed on the streets.
- Is bankruptcy meant for people with bad spending habits?
No — this is merely a negative stereotype. Although some people who file bankruptcy do so because they racked up consumer debt, many bankruptcies result from medical bills and other emergencies.
- How long does it take to file bankruptcy?
The legal process varies for every unique case. Generally, it is several months before your debts are discharged or you can start a repayment plan.
- What are the steps in bankruptcy?
Chapters 7 and 13 have slightly different steps, but they also have several similar elements. First, you will file a petition for bankruptcy with the court. Once you file, the court will place an automatic stay, which prevents your creditors from harassing you for payments. After this, you will meet with a bankruptcy trustee and discuss your finances. You will either sell some assets or create a repayment plan. The last step is for the court to discharge your remaining debt.
Ask A Bankruptcy Lawyer Your Questions In Person
Richard Rawdon, founder of Richard M. Rawdon, Jr. Attorney at Law, has helped countless clients in Kentucky when they faced bankruptcy. Schedule a consultation at his office in Georgetown so you can ask more questions in person. To get your consultation, call 502-316-6509 or send an email.