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Which type of bankruptcy fits you best?

When residents in Kentucky look into bankruptcy to get out of a deep financial rut, it can be overwhelming. What option do you go with? What's the difference between Chapter 13 and Chapter 7 bankruptcy? Which is best for you? Lonneman & McMahan, PLLC, will help you make these crucial decisions and get back on your feet after financial disaster.

There are many different bankruptcy options available. However, the two most common are Chapter 7 and Chapter 13. Chapter 13 will generally be better for you if you still have the ability to pay off your debts after they're reorganized. This option allows you to work with creditors to make a payment plan that you can stick to, allowing you to pay back your debt over a set period of time.

Chapter 13 can be difficult if you have no assets or money, though. If that describes your situation, you may want to consider Chapter 7 instead. Also known as liquidation bankruptcy, this type allows you to complete the bankruptcy procedure in under a year, normally. Your unsecured debts are entirely wiped clean by the end. However, it can also impact your credit score for a long time to come. You may have to liquidate some of your possessions as well, like cars or jewelry.

When researching the different types of bankruptcy that you can file for, just keep in mind that everyone is in need of their own unique solution. What worked for someone you know may not work for you. Research is your best tool in this situation. To start learning more about your options, you can click the link here. It will take you to our web page on bankruptcy, which includes benefits and drawbacks of the most popular types.

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