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Kentucky Bankruptcy Information

Chapter 13 Bankruptcy in Kentucky

Many individuals will not qualify to file Chapter 7 Bankruptcy. Another option for your family may be to file Chapter 13 Bankruptcy. Filing Chapter 13 Bankruptcy does not immediately discharge your debts, but it will allow you to keep most of your assets. Under Chapter 13 Bankruptcy, you will pay all or a portion of your debt by developing a 3 to 5 year debt repayment plan, which may be constructed to give you more favorable debt repayment options.

A Kentucky Bankruptcy Attorney will file your bankruptcy petition, complete all necessary bankruptcy forms, help you develop you repayment plan and appear in court for you. If you complete the debt repayment schedule and make all required debt payment, all qualifying debt will be discharged at the end of your 3 to 5 year plan.

Certain assets or personal property will be exempt from the bankruptcy process. All exempt assets are outlined in the Federal Bankruptcy Code. Many states, however, have created their own list of exempt bankruptcy assets and depending on the state where you live, you may be able to choose either the state exemption list or the federal exemption list. Some states will require you to use the state exemption list. In the state of Kentucky, you may use either the federal bankruptcy exemption list or the Kentucky bankruptcy exemption list. The goal of the exemption list is to allow you to maintain certain assets after bankruptcy.

Chapter 7 Bankruptcy in Kentucky

Chapter 7 Bankruptcy is called a \"liquidation\" bankruptcy. The first step is to meet with a Kentucky Bankruptcy Attorney. If they determine you qualify to file Chapter 7 Bankruptcy, they will work with you to file your bankruptcy petition in the appropriate Kentucky bankruptcy court. The bankruptcy petition and the Statement of your Financial Affairs will out line your creditors, the amount of debt you owe, your personal income and expenses and a list of your property. One of the benefits of filing bankruptcy is that the debt collection efforts will be delayed through an \"automatic stay\". Unfortunately, this delay may not be permanent if a Bankruptcy Judge decides the creditors have \"cause\" to continue their collection efforts.

A trustee will be assigned to your claim to sell your assets and use the proceeds to pay your creditors. Federal bankruptcy law determines which creditors are considered \"priority creditors\" and will be paid first. The main benefit of Chapter 7 Bankruptcy is that it is a quick, inexpensive, and easy way to discharge most of your unsecured debt. Chapter 7 Bankruptcy will take approximately 4 to 6 months to complete and will discharge unsecured debt such as hospital bills, unsecured personal loans and credit card debt. Individuals, corporations, married couples and partnerships all may be eligible to file Chapter 7 Bankruptcy.

Since 2005, the passage of the Bankruptcy Abuse Prevention and Consumer Act (BAPCA), has made it more difficult to qualify to file Chapter 7 Bankruptcy. The BAPCA added additional income tests that you must pass to file Chapter 7 Bankruptcy. The main purpose of the BAPCA was to require individuals who had a higher income or disposable income to pay their debt obligations through Chapter 13 Bankruptcy. In addition to the income tests, individuals must also take a credit counseling course before they file bankruptcy and complete a financial management course prior to the dismissal of your debt.


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Chapter 7 and Chapter 13 Bankruptcy Help

The two most common consumer bankruptcies are Chapter 7 and Chapter 13, our sponsoring lawyers handle these types exclusively so you can be sure you are getting accurate legal advice when you file bankruptcy. Our Bankruptcy attorneys will fight to protect your rights and your property, fight the aggressive and annoying creditors for you, and they can help you keep your home, vehicles and other property.

A lawyer will be committed to getting you debt relief and providing you with valuable information, services and advice to get you a better financial future. There are many convenient locations to make filing bankruptcy or learning about the alternatives we offer, even easier.

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