Bankruptcy.
If you’re struggling with unmanageable debt, bankruptcy can be a useful tool to help you get a fresh financial start. No matter how hard you try to stay ahead of your bills, circumstances such as death, job loss, illness, or divorce can make it impossible to achieve solvency. Our economy is healthier overall when people have a means to break free from the involuntary servitude that occurs when there is too much month left after the paycheck is gone.
Bankruptcy can help you eliminate unsecured debt (such as credit cards), halt a foreclosure or repossession, and stop wage garnishments, utility shut-offs and debt collection actions. Timing is critical in bankruptcy cases. There are time intervals, look back periods, and deadlines that determine the effectiveness of a bankruptcy petition. Our qualified guidance will help you navigate the complexity of the process.
The Federal Bankruptcy Code allows for an individual, married couple, or business organization to file for protection from creditors when their reasonable monthly expenses exceed their income. We help you assess your financial situation, formulate a strategy, and prepare to petition the Court for protection from creditors.
From the moment you retain our services, you can refer all creditor calls and inquiries to our firm. Once your petition is filed, there is an automatic stay that immediately stops creditors from attempting to collect from you. If you decide to file bankruptcy, we are there every step of the way — from preparing the voluntary petition to making sure your debt is discharged under Chapter 7 or reorganized under Chapter 13.
Chapter 7 Bankruptcy
With Chapter 7, you can discharge most types of debt, including credit cards, medical bills and other unsecured balances. The entire process usually takes about four to six months. Chapter 7 is also known as liquidation bankruptcy because some assets may need to be sold to repay your creditors. However, Kentucky law allows you to use state or federal exemptions to protect certain items, so depending on what you own, you may be able to keep most or all of your property.
Chapter 13 Bankruptcy
Chapter 13 allows individuals to enter into a court-approved repayment plan to reorganize their debts, including past due mortgage payments. This option may be best if you have steady income and are trying to avoid home foreclosure. The repayment plan lasts three to five years, and at the end, you may be eligible to eliminate any remaining balances on certain types of debt. If your mortgage lender has already started the foreclosure process, you might be able to save your home through Chapter 13 bankruptcy.