What Are Some Common Causes of Bankruptcy?
Financial difficulties can arise from a number of circumstances. Some of those circumstances are:
- Medical Issues
- Loss of Employment
- Loss of Transportation
Often the creditor, the person or company to whom the debtor owes money, will sue the debtor for an unpaid bill and a wage garnishment will follow. This can make catching up on debts and even paying for everyday living expenses difficult, if not impossible.
Many of these circumstances are beyond a person’s control. It is important to remember that, although the circumstance that caused the financial concerns may be beyond your control, it does not mean that your financial situation is beyond your control. Bankruptcy is a proactive approach to taking the situation into your hands, fixing it, and moving forward in a positive, productive manner.
The Bankruptcy Process
The bankruptcy procedure is not difficult. However, the law requires that you follow a very specific process for each type of bankruptcy. It is imperative that all rules, regulations and debts are addressed appropriately. Most importantly, we want to make sure that your specific questions and concerns are answered with the patience and expertise that you deserve.
Determine if Bankruptcy is Right for You
This is where the free consultation with your Bankruptcy expert, Ms. Barry, will prove to be invaluable. Click here to schedule your free initial consultation now.
Fill Out Your Bankruptcy Questionnaire
The questionnaire is available to download here, or you may give pick one up during your first appointment.
Complete Your Credit Counseling Course
Federal law requires that you take a credit counseling course before you file for bankruptcy. In order to expedite your bankruptcy, we recommend that you complete the course after you turn in your questionnaire from Step 2 so we can begin preparing your case for filing while you work on the course. The credit counseling course can be completed online or by phone, and the company that administers the test will email your certificate of completion directly to our office. View the List of Approved Credit Counseling Cource Providers Here.
Complete Your Personal Financial Management Course
Federal law also requires that you take a personal financial management course within 60 days of your bankruptcy hearing, which takes place 20 to 40 days after your case is filed. As with the credit counseling course, it may be completed online or by phone, and the company you choose to administer the test will email your certificate of completion directly to our office. View the List of Approved Personal Financial Management Course Providers Here.
Review & Sign Your Bankruptcy Forms
When we finish preparing your bankruptcy forms, just stop by our office to review and sign them. We’ll take care of the rest.
Receive Your Hearing Date
After you sign the forms in Step 5, we’ll file your case electronically with the Western District of Kentucky US Bankruptcy Court, and your hearing date will be set.
Send Required Documents to the Trustee
You will be provided with a list of documents that need to be submitted to the Trustee assigned to your case. The documents typically include pay stubs, bank records, etc. If you don’t have access to a scanner and/or email, we’ll send everything for you.
Attend the Bankruptcy Hearing
Attend your hearing with Ms. Barry on the date set in Step 6. There, you’ll be asked to answer a few basic questions. The hearing is very quick.
Receive Your Discharge of Debt Order
If you’re filing for Chapter 7 Bankruptcy: You’ll receive a Discharge of Debtor Order, and you’ll no longer owe the debts listed on the bankruptcy.
If you’re filing for Chapter 13 Bankruptcy: Your debts will be reorganized by the Trustee so that he can make payments on them on your behalf each month. Once the debts are paid, you’ll receive your discharge.