Addressing concerns about possessions in bankruptcy

| Oct 27, 2020 | consumer bankruptcy | 0 comments

While struggling under the weight of financial strain can be a stressful process, some individuals in Kentucky and elsewhere may find that choosing a path for relief could also seem intimidating. Certain aspects of the bankruptcy process may leave some dealing with debt for prolonged periods out of fear of something that might not even happen. While those who weigh the possibility of seeking debt relief through bankruptcy may worry that they will lose many of their possessions in the process, this might not always be the case.

The concept of losing ownership of possessions may stem from the information about the liquidation aspects of Chapter 7 bankruptcy. While this process may call for the liquidation of certain assets, this does not necessarily mean a person will lose everything. Seeking insight on how assets will be handled during a Chapter 7 bankruptcy could play a vital role in helping a person make informed decisions about his or her financial future.

With Chapter 13 bankruptcy, a person might not need to face the possibility of liquidating assets. Instead, one may be able to reorganize financial obligations and develop a plan to pay back certain amounts of debt over a set period. Provided one is able to adhere to the terms of this payment plan, his or her assets may be protected throughout the process.

Understanding how assets will be handled during bankruptcy may be essential to choosing the best course of action to take to safeguard one’s financial future. Since this can be somewhat complex, a person in Kentucky could benefit from consulting with an attorney for guidance prior to making decisions about the next steps to take. An attorney can work with a client in developing a plan to seek relief through the necessary channels and assist him or her through every stage of the process.