Bankruptcy
Bankruptcy relief can provide a fresh financial start in life.
Our firm is considered a debt relief agency by federal law.
We help people file for bankruptcy relief under the Bankruptcy Code. Bankruptcy is a phenomenal tool for someone who is buried under debt. You need a thorough bankruptcy lawyer to guide you through the process.
If you are in a state of financial distress, we understand what you are dealing with. You may have experienced some kind of unexpected life event, like a divorce, the loss of a job, or the death of a family member. You are stressed and worry constantly about how you are going to provide for your family. You get harassing letters and phone calls from debt collectors. Your credit card debt may seem insurmountable, growing faster every month than you can possibly pay it off due to unconscionable interest rates. You may be dealing with lawsuits, garnishments, foreclosure or repossessions.
When your financial situation seems hopeless, bankruptcy may be the answer. Once you file for bankruptcy protection, all harassing creditor phone calls and letters stop. All lawsuits, collection actions, and garnishments stop. Creditors cannot initiate or continue any lawsuits, wage garnishments, or even telephone calls demanding payments. The initial filing is often like a breath of fresh air for my clients who have felt like they were suffocating from debt.
We represent Kentuckians in both Chapter 7 and Chapter 13 bankruptcy cases. Very basically, Chapter 7 will eliminate credit card debt, medical debt, garnishments, personal loans, repossession deficiencies and even some tax debts. The Chapter 7 process is usually very quick and very painless, and the whole process can be completed usually within a couple months from your first phone call to an attorney.
If you are behind on mortgage payments or car payments, even if you have already received a foreclosure or repossession notice, a Chapter 13 bankruptcy can allow you to catch up.
Both Chapter 7 and Chapter 13 are phenomenal tools for those who are struggling with debt, and each offers unique benefits. Your attorney can explain the types of bankruptcy available and the process for each in more detail.
FAQs
Will calls and threats from creditors stop once a bankruptcy is filed?
Yes. When you file a bankruptcy petition, something called the “automatic stay” immediately goes into effect. The automatic stay prohibits creditors from contacting you. Your creditors will be violating the law if they contact you after the filing of a bankruptcy.
Will I be able to keep my home and car if I file bankruptcy?
Usually yes. If you are current with your payments, the bankruptcy code enables you to “reaffirm” your mortgage or car note in a Chapter 7 so that you can keep your home and/or car. If you are behind on your mortgage or car payments, a Chapter 13 may be the best option, as this will enable you to catch up on the late payments through a debt repayment plan.
What is a “no asset” Chapter 7 case?
A “no-asset” Chapter 7 does not mean you don’t own any assets. It just means none of your assets can be sold to pay creditors in the bankruptcy.
In very basic terms, a Chapter 7 bankruptcy is a “liquidation” which means the Trustee can sell the debtor’s assets to pay the debtor’s debts. However, in the vast majority of Chapter 7 cases in the United States, no assets are liquidated and creditors receive nothing at all from the debtor’s assets. This is because the Bankruptcy Code allows debtors to use certain exemptions to cover their assets. In most cases, an experienced bankruptcy attorney can help the debtor strategically use the exemptions to protect all of their assets, so that no assets are sold to pay creditors.
So, a “no-asset” case is one where a person’s debts are eliminated through a Chapter 7 discharge, but none of the debtor’s assets are lost. The majority of the cases we file are no-asset cases but talk to your attorney to see what options are available for you.
Will a Chapter 7 bankruptcy stop a garnishment?
Yes. When you file Chapter 7 or Chapter 13, all garnishments immediately cease, and the bankruptcy will also prevent other judgment creditors from stepping in and garnishing wages. You may even be able to recover funds that have already been garnished by creditors within 90 days prior to filing the bankruptcy, so it is important to move quickly if you are facing a garnishment.
How will filing for bankruptcy affect my credit?
Bankruptcy will negatively affect your credit score, and it will show on your credit report for a maximum of ten years. However, for many people who are considering bankruptcy, their credit score is already suffering, and they stand little chance of rebuilding their credit on their own without this crucial relief. While bankruptcy will have a negative effect on your credit score in the short-term, bankruptcy relief can help you get back on track financially and, combined with good financial habits after the bankruptcy, can help you build a stronger credit score in the long-term. Our firm offers information to help our clients rebuild their credit after completing bankruptcy.
Will filing for bankruptcy wipe out all of my debts?
A bankruptcy discharge will eliminate most kinds of consumer debts, such as credit card debt, personal loans, and most judgments. However, there are certain kinds of debts that are “nondischargeable”, which means they are not eliminated by the bankruptcy (or are only eliminated in rare circumstances). These nondischargeable debts include student loans, certain taxes, child support and alimony.
How often can I file for bankruptcy?
For a new Chapter 7 case:
If you previously received a discharge in a Chapter 7 or Chapter 11 bankruptcy case, you must wait at least eight (8) years before you can file Chapter 7 again. If you previously received a discharge in a Chapter 13 case, you must wait six (6) years before filing a Chapter 7.
For a new Chapter 13 case:
If you previously received a discharge in a Chapter 7 or Chapter 11 bankruptcy case, you must wait at least four (4) years before you can receive a discharge in a new Chapter 13. If you previously received a discharge in a Chapter 13 case, you must wait two (2) years before another Chapter 13.