While it may come as no surprise that dealing with high levels of debt can be stressful, sometimes, the idea of choosing the best path for relief could seem just as intimidating. Individuals in Kentucky who face similar hardships may find that bankruptcy could prove to be just the tool to help them seek the necessary relief, but they may still face difficult decisions while deciding the best course of action to take.
While some may feel that Chapter 7 bankruptcy could be the most viable path, others might wish to seek insight on the possible benefits of reorganizing their debts through Chapter 13 bankruptcy. As Chapter 7 and Chapter 13 bankruptcies differ in various ways, understanding what to expect from each outlet could prove vital to choosing the proper path. Some scenarios in which a person might benefit more from filing for Chapter 13 bankruptcy could include:
- Income as a concern: Individuals who make too high an income to qualify for Chapter 7 bankruptcy may still have the option of seeking relief by reorganizing finances and debts through Chapter 13.
- Addressing debts: A Chapter 13 repayment plan may also help address certain debts that might not be eligible for discharge through Chapter 7, such as taxes and support payments.
- Possession of property: One may also be able to retain possession of many or most of his or her possessions through reorganization, as this process might not call for the liquidation of assets.
- Discharge of debts: With Chapter 13 bankruptcy, a portion of one’s debts may still be eligible for discharge once the associated repayment plan is completed.
Although there may be various benefits to choosing Chapter 13 bankruptcy, understanding what is at stake and what might happen should one fail to adhere to the repayment plan could also be imperative.
Individuals in Kentucky who are weighing the possibility of filing for Chapter 13 bankruptcy but remain uncertain of it is the best path could benefit from seeking legal counsel early in the process. An attorney can work toward addressing all a client’s questions and concerns and provide guidance on all his or her available options. Such advice could play a vital role in helping a person prepare a strategy to reduce or eliminate debts through the proper outlets.