Hendersonville Bankruptcy Lawyer

Acquiring high amounts of debt can quickly lead someone to spiral out of control. It can leave you feeling trapped by overdue bills, relentless calls from creditors, and the overwhelming fear that you will lose everything important. When this stress starts to become unbearable, it may be time to consider leveraging bankruptcy as a way of regaining control and starting over again. A Hendersonville bankruptcy lawyer can help by guiding you through the different options that exist.

At Kerney Law Firm, we are here to provide compassionate and knowledgeable guidance throughout the bankruptcy process. Our firm focuses exclusively on consumer bankruptcy, providing individuals and families alike the attention they need to overcome their unique financial challenges. With our experience on your side, we can help you get control over your finances.

How Does Bankruptcy Work?

The bankruptcy process provides struggling individuals a path to achieve relief from their overwhelming amount of debt. It can either eliminate certain debts entirely or create a repayment plan that helps provide much-needed organization and structure to get the debt paid off.

Here are the steps:

Step 1: Determine Eligibility

Before you can file for bankruptcy, it’s important to understand what type you qualify for. Chapters 7 and 13 are the two most common forms of consumer bankruptcy. Chapter 7 is reserved for individuals who have little to no disposable income, while Chapter 13 is for those who have enough income to pay back the debt but can only do so through the creation of manageable monthly payments. A “bankruptcy means test” will determine which option you qualify for.

Step 2: Filing the Bankruptcy Petition

Once it has been determined you are eligible for either Chapter 7 or 13, the next step is to file a bankruptcy petition with the court. In this document, you and your lawyer will detail everything about your active debt, assets, income, expenses, and financial history. Along with the petition, you will be required to complete a credit counseling course. After you file the petition, an automatic stay will be triggered. This immediately stops collection efforts and lawsuits.

Step 3: The Role of the Bankruptcy Trustee

After you have filed, a bankruptcy trustee will be appointed to oversee the case. If you have filed for Chapter 7, the trustee will review your assets to determine what property can be liquidated to repay creditors. If you have qualified for Chapter 13 instead, the trustee will evaluate your proposed repayment plan to ensure the path is clear on how creditors will be paid. The trustee role is key to ensuring that the process is compliant with all federal bankruptcy laws.

Step 4: Debt Discharge or Repayment Plan Collection

In Chapter 7, once the trustee has reviewed your case, the court will issue a discharge of debt. This will eliminate most of your unsecured debt, including credit card and medical bills. If you are moving forward with Chapter 13, you must complete the repayment plan, which can last up to 3-5 years. Once this is complete, any remaining eligible debt could be discharged.

Contact Kerney Law Firm Today

If you are ready to explore bankruptcy options to help manage your debt, contact our firm today. We are here to help youmanage and overcome the financial challenges holding you back.