Bankruptcy Attorney in Paducah, Kentucky
Why Do I Need a Bankruptcy Attorney in Kentucky?
Making the proper decisions and using the bankruptcy legislation to your advantage will determine your financial destiny. When starting a bankruptcy case, there are many moving components. You must ensure that nothing is overlooked. Our team has years of experience and expertise when addressing these matters in Kentucky. When you deal with Farmer & Wright, PLLC’s bankruptcy lawyers, we will:- Intervene and immediately order to stop creditor harassment, giving you some breathing room.
- Consistently meet the demands of our clients at our Kentucky law office.
- Take time to get to know our clients to comprehend their goals in declaring bankruptcy.
- Decide how to proceed after we understand your long-term objectives and aspirations.
- Treat you fairly and equally, so you can rely on us.
- Never avoid challenging cases. We’ve demonstrated that we’re ready to give our customers the careful consideration they require.
How Does the Bankruptcy Process Work in Kentucky?
Most of the time, filing for bankruptcy in another state and Kentucky are the same. The bankruptcy procedure dissolves the contracts between you and your creditors, governed by federal exemptions and federal law rather than Kentucky state law. On the other hand, Kentucky bankruptcy laws have a considerable impact. In your bankruptcy case, they decide which property you can keep.What is Best for You? Chapter 7 or Chapter 13 Kentucky Bankruptcy?
Chapter 7 or Chapter 13 filings are the most common. Like you, others are unaware of the distinctions between the two. We’ll help you understand by providing a brief explanation below regarding Chapter 7 and Chapter 13 bankruptcy. Chapter 7 Bankruptcy – For various reasons, Chapter 7 is frequently chosen as the first bankruptcy option by filers. Only a few months are needed to finish it, making it rapid. You pay no money to creditors, so it is also affordable. It works wonderfully for those of us who own only the necessities for living and working. The opposite is also true. Those with better resources could lose them, particularly if they possess expendable luxury items. In some circumstances, if you have too much equity in your home or automobile or are behind on payments:- You may have to surrender your RV, baseball card collection, or even your timeshare in the Bahamas.
- Additionally, you may even have to give up your house or car.
- You can avoid losing your home to foreclosure or your automobile to repossession, including keeping all your property.
- You may utilize this chapter to compel a creditor into a payment plan if you need more time to pay back a debt you cannot dismiss through bankruptcy.
Does Bankruptcy in Kentucky Discharge Debts?
Numerous debts, including credit card balances, past-due utility bills, medical expenses, personal loans, and more, are discharged in bankruptcy. If you can part with the home or vehicle that serves as security for the debt, you may even be able to cancel a mortgage or auto payment. When you use something as collateral, you create a “secured debt” that the lender can seize if you default on your payments. Not all debts, however, are dischargeable. Student loan debt is difficult to dismiss (you would need to prevail in a separate litigation), and non-dischargeable debts, such as past-due taxes and domestic support arrears, would not be eliminated in bankruptcy. To make filing for bankruptcy worthwhile, you’ll need to be assertive that it will discharge enough debt.What are the Factors that Might Prevent You from Chapter 7 Bankruptcy Filing?
Several elements could influence whether you qualify for Chapter 7 bankruptcy. The following are some possible exclusions from filing for this type of bankruptcy:You may pay in installments monthly
The only option to demonstrate your inability to pay the debt is to have the judge convert your petition to Chapter 13 bankruptcy if your median income is too high or your responsibilities are too few.
Own a piece of non-exempt property
When you apply for bankruptcy, you must include a list of all your assets and debts. The bankruptcy trustee subtracts exempt assets to determine if you own anything that could be used to settle a debt. For example, if you owe $10,000 on a car worth $30,000, the court trustee may order you to sell the vehicle and use the $20,000 equity to pay off your debts.
You previously filed for Chapter 7 bankruptcy
If you filed for Chapter 7 bankruptcy before, the law requires you to wait eight years before filing a new one. The law mandates a six-year waiting period for those who have already filed for Chapter 13 bankruptcy.
Fraud against creditors was committed
The bankruptcy court may decide to throw out your case if you attempted to cheat your debt collector or misrepresented assets so you could keep them rather than have to sell them to pay your debt.
Particular actions are reported to the trustee and the court. If you participated in any of them within the last year, the court might decide to dismiss your bankruptcy case.
The trustee will likely conduct a thorough investigation into the following actions:
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- offering property for less than its actual market value to family or friends;
- incurring debt to purchase luxury items when you did not have the funds to repay it;
- withholding money or assets from a business partner; and
- falsifying information on a credit application about your commitments or income could lead to identity theft.
Additionally, by signing your bankruptcy filings, you must certify any information included are under penalty of perjury. The court may dismiss your case or refer it for fraud prosecution if they discover you willfully omitted to declare property, withheld crucial information regarding your financial circumstances, or used a fake Social Security number to hide your identity as a prior filer.
Transferred ineligible assets
A look-back period has been implemented for asset transfers. The bankruptcy trustee may reject your petition if they believe that a recent asset transfer was an attempt at fraud. Title transfers are easy to trace, like when you give your child a car.
Obligations you owe that you cannot discharge
Non-dischargeable debt will not result in the denial of your bankruptcy petition. You won’t be able to declare bankruptcy to cover all of your debts, though. Two examples of the 19 different types of debt that cannot be discharged include debt from student loans and obligations incurred during a marriage, such as alimony and child support.
Judgement-proof
There are a few ways for unsecured debt holders to get paid. The most frequent method is to file a lawsuit, which enables unsecured creditors to confiscate assets or deduct wages. Consumers who cannot be garnished, such as those whose income comes from Social Security or those without titled assets, are considered judgment-proof. So even if a lawsuit were to be brought, a creditor would not be able to collect the loan. In this circumstance, filing for bankruptcy would not be as advantageous.
Have accumulated enough amount of debt
Low debt ceilings make bankruptcy less advantageous due to the cost. A bankruptcy petition and legal representation could cost $2,000 or more. Unsecured debt in Chapter 7 is not subject to the estimated $360,475 cap imposed under Chapter 13.
Failure to take all necessary actions to comply with the bankruptcy
When you file for bankruptcy, there is a deadline for filing paperwork and completing specific tasks. If the required papers are not submitted by the due date, there may be a dismissal.
Failure to carry out the court-imposed responsibility to complete financial education
The bankruptcy filing process includes a component for education. You must complete a certified bankruptcy course at the start of the process and before the discharge to be qualified for debt relief and bankruptcy relief. If you fail to complete this course, your petition for approval may be rejected.
Given the difficulties you will experience as a result of declaring Chapter 7 or Chapter 13 bankruptcy, it would be beneficial to speak with a Chapter 7 bankruptcy lawyer in Paducah, Kentucky. They can assist you with a debt settlement program to help you get out of debt faster, start rebuilding your credit score quicker, and avoid having to live with the stigma of bankruptcy through legal advice.
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