No one in Louisville ever anticipates being in a scenario where they are drowning in debt. The trouble is that oftentimes comparatively small financial struggles can often be compounded by creditor actions, leaving one facing inordinate expenses that only continue to accumulate the longer that they go unresolved. It is for this reason why personal bankruptcy (while certainly not being something that people hope for) offers such a benefit to those struggling with debt. It ceases collection actions and puts a halt to the continued accrual of debt while one’s case is in progress, giving them the chance they need to get on top of things.
Yet it is imperative that those seeking Chapter 7 bankruptcy protection be completely forthcoming about their financial situations. Otherwise, they risk further legal action that could compound their troubles. The case of reality television star Towanda Braxton demonstrates this. She filed for Chapter 7 bankruptcy earlier this year, listing over $277,000 in assets compared to $550,000 in liabilities. Yet a former landlord has recently sued her saying that she has not been totally honest about her total assets as well as what she owes. He claims that she still owes him over $76,000 to cover the cost of unpaid rent and damages to his property. If successful, his debt could be excluded from those discharged in Braxton’s bankruptcy case.
The ultimate goal of a Chapter 7 bankruptcy is to relieve one’s eligible liabilities in order for them to re-establish themselves on firm financial footing. For this to happen, proper handling of their case is essential. Those needing assistance with this may find it in the form of an experienced attorney.