Frequently Asked Questions about Bankruptcy
Q: Why are so many consumers filing bankruptcy?
A: Americans generally have overextended themselves by using too much easily accessible credit to finance overspending, combined with lack of savings. With no financial safety net, sudden crises such as medical emergencies, job losses or failed businesses, death or disability of spouses, or divorce can result in insurmountable debt. On average, a typical bankruptcy debtor is employed and middle-aged with a high school education and relatively low income.
 Q: What alternative courses of action are there to filing bankruptcy when facing overwhelming debt?
 A: Short of bankruptcy, a debtor may enter into mediation with creditors or negotiate workout agreements to extend due dates, lower interest rates, partially forgive debt, or alter other terms. A debtor may execute an assignment of property for the benefit of creditors (ABC), wherein the debtor puts assets in the trust of a neutral third party to pay creditors. A business debtor can sell the business, negotiating the satisfaction of debt as part of the deal. Other creative options to bankruptcy exist.
According to the Administrative Office of the US Courts, there were nearly 1.8 million bankruptcies filed in the year ending March 31, 2006, up from just over 1.3 million in the year ending March 31, 2001. By the end of 2009, it is estimated that almost 1.5 million bankruptcies will have been filed in 2009.  To help sort your way through the complicated maze of overcrowded bankruptcy courts, you need the assistance of knowledgeable legal advocates, with years of experience and demonstrated trustworthiness.
If you are facing financial problems, an experienced bankruptcy lawyer can explain bankruptcy options that can help you to get a fresh start on life and a return to financial stability. At the Glasgow, Kentucky, law office of bankruptcy attorney John Rogers, we have a thorough understanding of the realities faced by people entering into Chapter 7 bankruptcy or Chapter 13 bankruptcy. It is our goal to help our clients find realistic solutions to their financial problems.
 Bankruptcy – An Overview
Bankruptcy is a legal vehicle that provides relief to individuals and businesses in serious financial trouble, and protects their creditors to the extent possible. Generally, the bankruptcy process assesses the debtor’s assets and liabilities, and provides a structure within which the debtor is allowed to keep some property and ordered to satisfy as many eligible debts as possible, according to an order of priority established by law. Remaining debts are discharged, except those of certain types, like domestic support orders, debt obtained by fraud, and most tax debt. The traditional stigma of bankruptcy has faded and been replaced by the view that it is a fresh start after a time of trouble. Most bankruptcy debtors experience unexpected and extreme financial shock, such as that caused by sudden events such as job loss, business failure, death, divorce, or illness. In such cases, filing bankruptcy may be the right answer. If you are facing serious financial challenges, it is very important to seek the counsel of an experienced bankruptcy attorney, such as one from John Rogers, Attorney at Law in , Kentucky, to help you to assess your legal options.
 When an individual falls desperately behind in his or her debt payments, one option may be to declare bankruptcy, a legal proceeding in a federal bankruptcy court that allows the debtor to be relieved of some or all of his or her debts. Although in many ways bankruptcy can give a person a fresh start, it is important to remember that bankruptcy can also negatively affect his or her credit rating and make it hard to obtain credit in the future. The experienced lawyers at John Rogers, Attorney at Law in Glasgow, Kentucky can advise you as to whether bankruptcy may be the right move for you.
Commercial Bankruptcy
 Like a consumer, a business sometimes finds itself in the uncomfortable position of being unable to pay its debts. One solution is to file for bankruptcy, a legal process in federal bankruptcy court that releases the business from the obligation to pay all or some of its debts. Although bankruptcy provides a fresh start, bankruptcy can also have harmful credit consequences. Sometimes the bankrupt business even ceases to exist at the end of the court proceedings. A lawyer experienced in bankruptcy can advise business owners about whether bankruptcy is right for them.
Credit Counseling Requirement in Bankruptcy
In 2005, Congress passed and the president signed the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), a bankruptcy reform law. One of the new requirements BAPCPA imposes on a new bankruptcy debtor is to receive credit counseling from an approved credit counseling agency before the bankruptcy filing. A lawyer experienced in consumer credit and bankruptcy law can help educate debtors about these new counseling requirements. Read More Surviving the Emotional Effects of Bankruptcy No matter what circumstances ultimately led to filing bankruptcy, both the practical and the emotional impact on the debtor will be enormous. Confronting the emotional and psychological issues surrounding bankruptcy and reaching an understanding and acceptance of the situation are essential to rebuilding and maintaining a successful financial life. An experienced bankruptcy attorney can guide a debtor through the complicated legal, financial, and emotional maze of bankruptcy and steer him or her in the right direction for the future.