Debtors in Kentucky and throughout the country may be doing themselves a disservice by waiting to file for bankruptcy. By waiting, they could deplete assets or otherwise negate some or all of the financial benefit gained by filing. In many cases, individuals who choose to file only do so when they are at the point when they face debt collection calls or creditor lawsuits. The time that people spend putting off asking for protection from creditors is called the sweatbox.
What to know before filing for bankruptcy
Filing for personal bankruptcy can come with many benefits for Kentucky consumers who are looking to get a handle on their debt. However, it is important to spend time prior to filing learning the process of doing so and what it entails. For instance, debtors are required to disclose all of their debts to the bankruptcy court. They should also be disclosed to the bankruptcy trustee as well as to the debtor's attorney.
Can you wipe out recent credit card debt through bankruptcy?
If you are seriously considering bankruptcy as your only way out of debt in Kentucky, you probably already know that a Chapter 7 bankruptcy wipes out your credit card debts as well as virtually all your other consumer debts. What you may not know, however, is that Chapter 7 may not discharge debts that you incur on your credit cards right before filing bankruptcy.
