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Is Chapter 7 bankruptcy a good fit for you?

Kentucky residents who have decided to file for bankruptcy will have two main options: Chapter 13, or Chapter 7. Both have their own merits, and Lonneman & McMahan PLLC will help you determine which benefits will work best for your particular lifestyle and debt situation.

The first thing to consider is what you're willing to part with. The second is how much money and how many assets you have to work with. Chapter 13 is best for someone with a continued income, as it involves paying off small portions of your debt that have been broken down into more manageable chunks.

Chapter 7, on the other hand, will liquefy your sellable assets. This can include your car, valuable possessions that don't hold sentimental value, and so on. The plus side of this is that almost all of your debts will be forgiven as a result of filing for Chapter 7 bankruptcy. This includes hospital and credit card debts, which are among the top causes for individual debt in the modern day.

Next, you should consider time. For some, Chapter 7 will undoubtedly be the faster option. It can actually take less than a year for the process to be completed. This may sound like a long time to you, but legal processes can last years due to their complexity, so this is quite a kind timeframe.

When it comes to Chapter 7 bankruptcy, or any kind of bankruptcy, you must carefully weigh what you want to gain out of the bankruptcy against what the bankruptcy type is able to offer you. If bankruptcy is an option you're seriously considering, take a look at our web page on bankruptcy to read more.

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