Exemptions in Chapter 7 Bankruptcy | Paducah, KY

Exemptions in Chapter 7 Bankruptcy

Chapter 7 Bankruptcy Exemptions Attorney in Paducah, KY

If you are familiar with bankruptcy, you are familiar with the types of bankruptcies namely chapter 7 bankruptcy, chapter 13 bankruptcy, and chapter 11 bankruptcy. More often than not, people file for chapter 7 bankruptcy or the liquidation bankruptcy. This type involves exempt and nonexempt property that a chapter 7 bankruptcy exemptions lawyer can help. To explain briefly, exemptions in chapter 7 bankruptcy pertain to items that you can keep, usually essentials such as your home and your vehicle. In contrast, nonexempt property pertains to items you can sell in order to pay your creditors. A chapter 7 bankruptcy exemptions lawyer from Paducah, KY can help you familiarize yourself with bankruptcy law, and the items you can exempt under Kentucky exemptions law.

Trusted Paducah, KY Chapter 7 Bankruptcy Lawyer

If you are caught up in a chapter 7 bankruptcy situation, it is wise to get in touch with a chapter 7 bankruptcy exemptions lawyer Paducah KY law office Farmer and Wright, PLLC is proud to have.  An attorney with in dept knowledge of Kentucky law will be your best advocate. We can also guide you towards the best course of action when dealing with a bankruptcy case following the bankruptcy code. Get in touch with a trusted chapter 7 bankruptcy exemptions lawyer, Paducah KY law firm Farmer and Wright is proud to have. A bankruptcy lawyer can guide you through the process, inform you of what items can be exempted based on Kentucky state laws, and represent you in bankruptcy court. Don’t go through the complicated world of bankruptcy alone. Schedule an appointment with Farmer and Wright, PLLC right now.

Why do I need a Chapter 7 Bankruptcy Exemptions Lawyer in Kentucky?

If you are dealing with bankruptcy in Paducah, Kentucky you might be tempted to think that you’ve already got a lot on your plate. With the thought of having to sell off property to pay your creditors, it just seems like there isn’t even enough money for legal fees. However, take comfort in the notion that Farmer and Wright, PLLC offers free consultation to help you sort out your money worries without adding more money worries. 

How does having a bankruptcy attorney help in your situation? For one, an attorney can guide you through the bankruptcy process, explain difficult concepts you might encounter along the way, and represent you in bankruptcy court. A bankruptcy attorney can even guide you in filling out a bankruptcy form. A bankruptcy attorney can guide you with the process of filing through a 3 step debt recovery process that involves a personalized plan unique to your particular situation and in accordance with state law that is designed to get you out of debt and get a fresh start.

Schedule an appointment with a chapter 7 bankruptcy exemptions lawyer from Farmer and Wright, PLLC. A bankruptcy lawyer from this law office can be your best advocate in this trying time and help you get out of bankruptcy in order to gain that fresh new start in life. The law office provides legal assistance to clients in the Louisville, Hopkinsville, Bowling Green, and Elizabethtown areas, ensuring they get debt relief. Get in touch with a Kentucky bankruptcy attorney right now to make filing for bankruptcy a breeze.

What are Chapter 7 Bankruptcy Exemptions?

chapter 7 bankruptcy exemptions lawyer

Before you can understand what items can be exempted in a chapter 7 bankruptcy, it is important to first understand what chapter 7 bankruptcy is. Chapter 7 bankruptcy is the liquidation bankruptcy and this is often filed by most people since its main requirement is having an income that is below the state median. However easy it sounds, there is still a qualification that needs to be passed in order to be able to successfully undertake chapter 7 bankruptcy filing.

In bankruptcy there is the concept of exempt and nonexempt property. If you file for chapter 13 bankruptcy, you can keep your property but have to be able to fulfill a 3-5 year repayment plan. Chapter 7 bankruptcy doesn’t have such a policy, so it is important that you know what the exemptions are to understand what items you can keep and what things have to be sold to pay off your creditors. 

In this situation, know that the best course of action is still to get in touch with a Paducah, KY chapter 7 bankruptcy exemptions lawyer. 

How Much Property Can Be Kept in Chapter 7 Bankruptcy?

Chapter 7 bankruptcy exemptions depend on the state you’re from as each state has their own policies regarding exemptions and they require filers to abide by these. Some states allow you the freedom of the state exemption system or federal exemption scheme.

To elaborate, the federal system allows debtors to retain a certain amount of equity in their property such as vehicles, homes, retirement accounts, and wages. Household goods and clothing needed for daily life are also qualified as exempt property. 

What is the Chapter 7 Bankruptcy Estate?

Everything that is yours when you file for bankruptcy become part of the bankruptcy estate. The following assets are usually part of the estate:

  • Properties you own
  • Property in someone else’s possession such as loans
  • Property given away
  • Items you haven’t received but are entitled to 
  • Proceeds
  • Assets received within 180 days after filing
  • Marital property shares

The bankruptcy trustee assumes control of the bankruptcy estate and what happens to it depends on whether it can be protected with an exemption.  The bankruptcy process can be complicated so be sure to enlist the help of a bankruptcy attorney.

What are The Rules for Exemptions in Kentucky?

Kentucky bankruptcy policies vary, just like in other states. Kentucky has a set of rules regarding exemptions including:

Homestead Exemptions

You’ll be able to protect about $5,000 of equity in real or personal property in Kentucky

Motor Vehicle Exemptions

$2,500 worth of equity on motor vehicles can be exempted. 

Wildcard Exemptions

You can keep real or personal party worth around $1,000 in Kentucky

Other Exemptions

  • Alimony. You can exempt alimony and support to what is reasonably necessary for you and your dependents.
  • Insurance. Proceeds or benefits paid by a cooperative life
  • Personal Property. You can exempt around $3,000 in household goods, clothes, tools, equipment, and health aids. 
  • Pension/Retirement Accounts. ERISA-qualified accounts, employees pensions, teacher’s pensions. 
  • Public Benefits.
  • Trade Tools. $300 tools for trade or profession

Call our Paducah Chapter 7 Bankruptcy Exemptions Lawyer Now!

Chapter 7 bankruptcy might be seen by many as a low point in their lives, with what having to sell off their properties in order to pay off debts and creditors, but bankruptcy can be a symbol of a fresh new start, a chance to start from the beginning. Bankruptcy’s process can be quite complicated, however and if you are looking to understand what exempt and nonexempt properties are, then it is best that you get in touch with a chapter 7 bankruptcy exemptions lawyer. 

If you are dealing with bankruptcy in Paducah, KY wait no longer! Get in touch with Farmer and Wright, PLLC, a law firm that houses a chapter 7 bankruptcy exemption lawyer who can help you with the bankruptcy process, explain state laws on exemptions to you, and guide you towards the best outcome for your situation. Schedule an appointment with Farmer and Wright, PLLC right now.

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