Marcus H. Herbert & Associates
Tell the bill collectors you have a lawyer!
Toll Free: 866.702.8933 | Local: 270.908.0552

Western Kentucky Bankruptcy Blog

What are the pros and cons of filing Chapter 13 bankruptcy?

Dealing with financial problems is not something one wants to face; however, when they occur, they are something that need to be addressed. Much negative connotations are attached with the bankruptcy process. Many individuals are concerned about it impacting their future credit and even affect his or her reputation or self-image. Thus, it is important to understand how filing for bankruptcy could be beneficial, even if there are setbacks to also consider.

What are the pros and cons of filing Chapter 13 bankruptcy? Let's begin with the pros of this process. Chapter 13 helps a debtor develop a payment plan, helping them pay off debts in a more manageable and reasonable way. While it takes longer to address debts than Chapter 7 does, there is more flexibility in this process. In some cases, one can stretch out their debt payments and even reduce the amount they pay. A major benefit is that a debtor gets to keep the property they are making payments on, such as a home or a vehicle.

Helping you determine if a Chapter 7 filing is right for you

There are many reasons why individuals in Kentucky and elsewhere take on debts. This could be for an education, to buy a car, purchasing a home or even accumulating credit card debt. In many cases, these debts are manageable and rather normal. However, when individuals and families take on more than they can handle or suffer financial challenges, these debts can become extremely overwhelming. It can become so significant that debt relief options become the only way one will be able to obtain a fresh financial start.

Filing for bankruptcy is a serious and emotional decision to make. It is also one that individuals shouldn't make without knowledge and information of the process. At Marcus H. Herbert & Associates, our attorneys understand that the process can be overwhelming. However, we stand by our clients' sides, letting them know that they are not in this alone.

What are some benefits of filing for Chapter 7 bankruptcy?

Many Western Kentucky residents may be finding themselves in a lot of debt this time of year. This debt can come from unavoidable situations, like medical expenses but can cause a family a crazy amount of stress. Bankruptcy can be an option for people if they need help dealing with some of their debt.

There are many benefits of filing for Chapter 7 bankruptcy. One of the main advantages of filing for Chapter 7 bankruptcy is the ability to have a fresh start. Many debts can be eliminated that include credit card bills, medical bills, past due utility bills, personal loans from family and friends, etc. These are many of the common debts that people carry with them and can add up to thousands of dollars. In addition, the debtor gets to keep his future income. There is also not a limit to the amount of debt a person can have for a Chapter 7 bankruptcy and there is not a repayment plan. Finally, the discharge of the debt happens fairly quickly, usually within 60 to 90 days.

Can filing bankruptcy help with your student loan debt?

Most college graduates understand the benefits a degree can provide, with increased employment opportunities and higher earnings potential. If you financed your own college education, you likely also understand the strain your student loans can place on you as you try to make your way in the world after graduation.

If you are drowning in student loan debt, it's important to know that it is very challenging, but not impossible, to dismiss student loans in bankruptcy. The criteria are very strict, but a lawyer can review your financial circumstances to determine whether you are eligible.

If you are not able to dismiss your student loans in bankruptcy, you may still be able to get relief from other debts such as medical bills or credit card debt you accumulated during and after college. In some cases, discharging these other debts allows people to make their student loan payments. 

Debt a big issue for Gen X-ers

Carrying debt is pretty common in the United States. It appears it is especially common though among one particular generation: Gen X. Currently, the rough age range for Gen X is 36 to 51.

A recent Lightstream report looked at survey data covering different generations. Of the Gen X-ers surveyed, 80 percent reported having debt. This was the highest percentage of any of the generations the report looked at.

EMAIL US FOR A RESPONSE

Office Location

Marcus H. Herbert & Associates
416 S 5th St
Paducah, KY 42003-1530

Toll Free: 866-702-8933
Phone: 270-908-0552
Fax: 270-443-6345
Paducah Law Office Map

Re-Imagine Your Financial Future Start By Getting Your Questions Answered

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Review Us