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Filing for bankruptcy can feel overwhelming, but it’s a structured process designed to help you get relief from debt. Whether you’re considering it due to medical bills, job loss, or credit card debt, understanding the steps can make things easier. Here’s what to expect.
Choosing the Right Type of Bankruptcy
The two main types of personal bankruptcy are:
- Chapter 7 (Liquidation Bankruptcy) – Wipes out most unsecured debts like credit cards and medical bills. Some assets may be sold, but many are protected under Kentucky exemptions.
- Chapter 13 (Repayment Plan) – Lets you keep your property while repaying debts over three to five years. This is ideal if you’re behind on your mortgage or car payments.
Completing the Required Steps Before Filing
Before filing, you must complete a credit counseling course from a court-approved provider. This takes about an hour and can be done online or by phone. Once that’s complete, your attorney will prepare your bankruptcy petition, listing all your income, assets, debts, and expenses.
Filing Your Case and the Automatic Stay
When your bankruptcy petition is filed with the court, an automatic stay goes into effect. This stops all collection efforts, including:
- Wage garnishments
- Foreclosures
- Creditor harassment
- Lawsuits and repossessions
This protection remains in place throughout your case, giving you peace of mind while your bankruptcy moves forward.
Attending the Meeting of Creditors
A few weeks after filing, you’ll attend the 341 Meeting of Creditors, where the bankruptcy trustee reviews your case. Creditors can attend, but they rarely do. This is usually a brief and straightforward meeting where you answer basic financial questions under oath.
Receiving Your Debt Discharge
In a Chapter 7 case, most debts are discharged within four to six months. In a Chapter 13 case, you must complete your repayment plan before receiving a discharge. After this, you’re no longer legally obligated to pay discharged debts, allowing you to move forward financially.
Speak with a Bankruptcy Attorney for Help
Bankruptcy is a fresh start, and having the right legal guidance makes the process smoother. Dennery Law can help you understand your options and protect your assets. Call 877-273-1976 or visit our office location to schedule a consultation today.