If your median income is below the state median income, you can file Chapter 7 Bankruptcy. If it above the Kentucky median income, a Kentucky Bankruptcy Attorney can help you perform additional "means testing."
The means testing generally will analyze your income and your disposable income to determine if you can pay your creditors. If you subtract your house payment, car payment, school tuition (up to a limit), and taxes owed from your income and you have disposable income up to $6,000 or $100 per month that could be used to pay your unsecured creditors for the next 60 months, you may have to file Chapter 13 Bankruptcy. If you do not pass this test, but still have enough income to pay 25% toward debt repayment over the next 60 months, you may have to file Chapter 13 Bankruptcy.
In the state of Kentucky, median income information is published by the United States Trustee program. . The State Median Income for the state of Kentucky after March 15, 2009, for a single wage earner is $36,628. For a family of two it is $45,474, for a family of three it is $55,391 and for a family of four it is $65,520.
The above information is general information. A Kentucky Bankruptcy Lawyer should be contacted to review your financial information to determine if you can file Chapter 7 Bankruptcy or Chapter 13 Bankruptcy.