If you are a reader of our blog posts then you likely already know that not only are there two common forms of bankruptcy available to individuals (Chapter 7 and Chapter 13). You may also know that your choice of which form to use may not always be completely within your control; one of the decision factors is whether you qualify for Chapter 7 under what is referred to as the "means test."
If you have decided that personal bankruptcy is the right choice for you to get out of that an unmanageable debt situation, before you can discharge your debts under Chapter 7 or arrange a payment plan under Chapter 13 you will need to comply with some additional requirements imposed by the U.S. Bankruptcy Code. These are credit counseling and debtor education.
If you have decided that bankruptcy is your best option for debt relief – and that a Chapter 7 “fresh start” approach instead of a Chapter 13 payment plan is best for you (and further assuming that you qualify to use Chapter 7 bankruptcy), then your next inquiry will be how the Chapter 7 process works.
Now that he is a Presidential candidate, Donald Trump’s personal and business affairs are bound to come under the microscope. One of those business affairs that some may have forgotten or others never knew is that Trump filed Chapter 11 bankruptcy four times. Chapter 11 is a type of bankruptcy that businesses use to stay afloat while reducing their debt. But reducing that debt can have an effect on individuals while the company reorganizes.
Kentucky residents who have fallen on difficult financial challenges may be interested in learning about chapter 7 bankruptcy. This is an option that gives you a fresh financial start by essentially liquidating your assets and using that money to wipe away the majority of your debts. But, it is reserved for only some residents who are struggling with debt, and there are certain criteria that must be met in order to utilize it.