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The means test of Chapter 7 bankruptcy

Chapter 7 bankruptcy is one of the two main personal bankruptcy options that Kentucky residents may utilize to eliminate their overwhelming debts. Unlike Chapter 13 bankruptcy, however, Chapter 7 bankruptcy requires filers to have a sufficiently low income in order to qualify. While under Chapter 13 bankruptcy, a debtor may use their income to pay down their financial obligations, under Chapter 7 bankruptcy, they must liquidate their assets and property in order to garner funds for the repayment of their loans.

What is Chapter 13 bankruptcy?

Not long ago, this blog discussed the elements of a Chapter 7 bankruptcy case. Chapter 7 bankruptcy can be an important tool for individuals who find themselves overwhelmed by debt. However, not all debtors may wish to liquidate their assets in order to pay off their creditors and, for this reason, they may look for another option to help them find financial freedom.

What are the requirements for filing for Chapter 13 bankruptcy?

Not long ago, this blog discussed the elements of a Chapter 7 bankruptcy filing. Many individuals who use bankruptcy as a means of alleviating their overwhelming financial burdens choose Chapter 7 because it provides a relatively quick method of finding freedom from debts. However, it is important that those who are considering bankruptcy understand the Chapter 13 process as well and the requirements it imposes on those who wish to utilize its protections.

An overview of Chapter 7 bankruptcy

Financial stress and strain can be overwhelming for a Kentucky resident. It can also be incredibly isolating to feel as though a person is alone in their financial fight. Readers of this blog who are pressured by the weight of overwhelming debt and insurmountable bills may wish to consider Chapter 7 bankruptcy and then seek their own counsel on whether the process may be beneficial to their financial situations.

Bankruptcy is a legal tool to address overwhelming financial debt

No one wants to experience the undeniably stressful feeling of being unable to pay one's bills. As their mailboxes fill up with medical bills, mortgage bills, utility bills and a host of other periodic and one-time costs, Kentucky residents may watch their savings and investments dwindle and their plans for the future change. Financial hardships can result from any number of causes, such as loss of work and unexpected medical expenses, but whether or not a person should have expected the monetary challenges that they are facing is irrelevant to the burden they must carry as financial peril sets in.

Understanding your credit score

You work hard. You do your best to provide for your family. You do what you can, but sometimes it is hard to keep up. You have bills to pay and mouths to feed. There are necessities that you can't go without. You are doing your best to stay afloat. You want to save money and rebuild your financial situation for a better future. You know your credit score is important.

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Sheehan, Barnett, Dean, Pennington, Little & Dexter, P.S.C.
114 South Fourth Street
Danville, KY 40422

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