A good question, that I am guessing we will hear much in the next few years. We often heard this question asked when the giant General Motors, once the largest corporation in the world, filed bankruptcy a few years back to deal with its debts.
The answer is that bankruptcy may be an option for you. Absolutely.
Of course, as an individual, you would not be filing Chapter 9 Bankruptcy, which is what Detroit filed. Chapter 9 is the bankruptcy Chapter for cities that file bankruptcy. What you would most likely be filing is either Chapter 7 or Chapter 13.
Like Detroit, you would be using the federally provided protection of the bankruptcy court to discharge debt and possibly pay back all, or a portion of some debt that you are able to pay back.
We will hear much more of Detroit’s bankruptcy in the coming months and years. The good news for you is that bankruptcy for individuals, although giving you the same protection that Detroit is getting, is much less costly and time-consuming. In a Chapter 7 and 13 bankruptcy, you can often hire an attorney and file within a couple of weeks. In Chapter 7, you usually have a discharge of your debt within 3 months. In Chapter 13, it may take as long as 60 months to get a discharge, but your creditors are kept at bay during that period.
John Rogers, Kentucky Bankruptcy Attorney 1-888-651-9353
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