Bankruptcy is a scary word. The process can be demanding and emotionally draining, not to mention an overwhelming, confusing burden to navigate.
However, for some, bankruptcy is a chance to start fresh. With experienced attorney Michele Wilson Jones at your side, the legal burden of bankruptcy is in good hands while you focus on moving on.
How does bankruptcy work?
The two types of bankruptcy are Chapter 7 and Chapter 13, and both prevent creditors from collecting debts you owe them. Other than this shared provision, the two types of bankruptcy differ immensely.
If your household earns less than the Kentucky median income, you can file for Chapter 7 bankruptcy. Chapter 7 bankruptcy includes the following provisions:
- The courts may sell your non-exempt property to pay your debts.
- You may no longer need to pay debts for student loans, restitution, income tax, spousal or child support, divorce-related debts, and other court-ordered payments.
- For any debts related to property repossession, the owner may repossess the property even if your debt is canceled.
If your household earns more than the Kentucky median income, you can file for Chapter 13 bankruptcy. Your debts will be consolidated and some will be canceled. You’ll need to pay off the consolidated balance over three to five years. Chapter 13 bankruptcy may be better for homeowners or debtors who need to protect assets that, under Chapter 7, could be sold to pay for debts.
Do I Have to Be Broke to File for Bankruptcy?
Bankruptcy isn’t about having zero dollars in your bank account. It’s about having debts that the money in your bank account just can’t cover. You shouldn’t have to worry that bankruptcy signals that you’re broke – it can happen to anyone.
The Pros and Cons of Filing for Bankruptcy
Bankruptcy stabilizes your financial situation. With a debt repayment plan in place, your assets – such as your home, your car, and other life essentials – can sometimes remain yours. You’ll get a chance to start over after a harrowing buildup of overdue loans, payments, and more.
Of course, bankruptcy doesn’t mean a completely clean start. Your credit report will display a Chapter 7 bankruptcy for 10 years and a Chapter 13 bankruptcy for seven years. Since Kentucky employers may request credit scores before they hire you, bankruptcy may affect your future work prospects.
Another potential pitfall of bankruptcy is how it affects others in your life. Though bankruptcy protects you as an individual, any co-signers on your debts remain vulnerable to creditors.
Choose Michele for counsel on bankruptcy matters such as:
Debt Relief
Asset Protection
Chapter 7 Bankruptcy
Chapter 13 Bankruptcy
Individual Bankruptcy
Choose Michele Wilson Jones for bankruptcy help
Bankruptcy sounds frightening, but you can get legal help, even without significant financial means. Michele firmly believes that all are entitled to experienced legal help, no matter their ability to pay.
If you’re contemplating filing for bankruptcy, just walk into the office and speak with Michele. Although you can make an appointment, you don’t need one – when Michele is here, she’s here to help. Your conversations will remain entirely confidential.
If you think bankruptcy may be the right option for your debts, contact Michele Wilson Jones, Attorney at Law for a confidential, no-obligation consultation.
Ph. (606) 376-2200
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