Bankruptcy: Knowing what to expect from the process

| Apr 6, 2020 | consumer bankruptcy | 0 comments

While dealing with prolonged periods of financial hardship can be harrowing enough as is, making decisions about how best to handle the situation can also be an intimating process. Individuals in Kentucky who experience similar challenges may have already begun exploring the possibility of seeking relief through bankruptcy, but they might still have some reservations about the process. By seeking advice on what to expect from the process of filing for bankruptcy, a person might feel better prepared to make informed decisions about his or her situation and begin working toward a brighter financial future.

One of the first aspects of bankruptcy that may come as a surprise could pertain to the amount of time it might take to finalize the process. For instance, it could take as long as four to six months to finalize a Chapter 7 bankruptcy, while plans from a Chapter 13 bankruptcy could take up to three to five years to complete. Understanding this aspect of the process could be essential to forming a strategy on how best to approach the situation.

After filing for bankruptcy, the automatic stay kicks in and provides a person with protection against creditors. However, this protection doesn’t extend to co-signers and understanding how the process could affect others could also influence one’s decisions. Understanding the impact bankruptcy could have on one’s credit score and the steps to take to begin rebuilding this area of life once the process is completed could be essential to preparing for the process.

Filing for bankruptcy is a major financial decision and the process can be somewhat complex. Those who continually struggle under the weight of debt and wish to know if filing for bankruptcy is the best path to take could find it helpful to consult with an experienced attorney as soon as possible. An attorney can examine the situation a client in Kentucky is facing, help form a plan to pursue debt relief through the proper outlets and subsequently assist him or her in navigating the process.