{"id":1363,"date":"2017-07-31T18:44:06","date_gmt":"2017-07-31T18:44:06","guid":{"rendered":"https:\/\/farmerwright2.wpengine.com\/?page_id=1363"},"modified":"2024-01-12T15:17:14","modified_gmt":"2024-01-12T15:17:14","slug":"chapter-7-bankruptcy","status":"publish","type":"page","link":"https:\/\/farmerwright.com\/chapter-7-bankruptcy\/","title":{"rendered":"Paducah Chapter 7 Bankruptcy Attorney"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-page\" data-elementor-id=\"1363\" class=\"elementor elementor-1363\" data-elementor-post-type=\"page\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-cb88597 chapter7 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"cb88597\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-3f1ba52a\" data-id=\"3f1ba52a\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-7cec3e5e elementor-widget elementor-widget-text-editor\" data-id=\"7cec3e5e\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" class=\"alignright wp-image-1364 size-medium\" title=\"Chapter 7 Bankruptcy Attorney Paducah and Hopkinsville\" src=\"https:\/\/farmerwright.com\/wp-content\/uploads\/2017\/07\/Chapter-7-bankruptcy-300x200.jpg\" alt=\"Chapter 7 bankruptcy Attorney Paducah\" width=\"300\" height=\"200\" srcset=\"https:\/\/farmerwright.com\/wp-content\/uploads\/2017\/07\/Chapter-7-bankruptcy-300x200.jpg 300w, https:\/\/farmerwright.com\/wp-content\/uploads\/2017\/07\/Chapter-7-bankruptcy-768x512.jpg 768w, https:\/\/farmerwright.com\/wp-content\/uploads\/2017\/07\/Chapter-7-bankruptcy.jpg 1019w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/>\n\nIf you are overwhelmed by unsecured debts (such as credit card debt and medical bills), you may benefit from a Chapter 7 bankruptcy. When most people <a href=\"https:\/\/farmerwright.com\/personal-bankruptcy\/\">file for bankruptcy<\/a> in Kentucky, they file under Chapter 7. Sometimes called a \u201cliquidation bankruptcy,\u201d it involves selling your\u00a0nonexempt\u00a0assets to pay off your creditors. In exchange, most of your remaining debt is wiped out.\n\nIn the past, bankruptcy was incorrectly viewed as shameful. However, we now understand that it is an important federal consumer protection. Chapter 7 bankruptcy is simply your first step towards a healthier financial future. We can help you reset and rebuild.\u00a0Call Farmer and Wright, PLLC\u00a0today to find out how we can help you.\n<h2>Do I Qualify for Chapter 7 Bankruptcy?<\/h2>\nIn order to qualify for Chapter 7 bankruptcy, you must pass its means test. You must show that either:\n<ul>\n \t<li>Your monthly household income is below Kentucky\u2019s median income (as of May 1, 2017, $72,863 for a family of four), or<\/li>\n \t<li>After allowed expenses are subtracted, your monthly household is below the means\u00a0test\u2019s\u00a0threshold.<\/li>\n<\/ul>\nIt can be difficult to perform means test calculations without the help of an experienced <a href=\"https:\/\/farmerwright.com\/\">Kentucky bankruptcy lawyer<\/a>. The median income and means test thresholds change over time. And, it\u2019s important that you include all of your allowed expenses when performing calculations. (If you don\u2019t qualify for Chapter 7 bankruptcy, don\u2019t panic. You may still be eligible for a Chapter 11 filing.)\n<h2>Do I Lose All My Property?<\/h2>\nDuring a Chapter 7 bankruptcy, all of your\u00a0nonexempt\u00a0property is liquidated (or sold). However, bankruptcy exemptions cover certain types (and certain amounts) of property. If your equity in that property is within the exemption, you can keep it. Exempt property typically includes specific amounts of:\n<ul>\n \t<li>Home equity,<\/li>\n \t<li>One motor vehicle,<\/li>\n \t<li>Personal property,<\/li>\n \t<li>Pensions and retirement funds,<\/li>\n \t<li>Personal injury and other compensation awards,<\/li>\n \t<li>Alimony,<\/li>\n \t<li>Public benefit payments, and<\/li>\n \t<li>Certain professional tools and materials.<\/li>\n<\/ul>\nIn Kentucky, you can choose between either the state or federal bankruptcy exemptions. (You cannot, however, \u201cmix and match\u201d state and federal exemptions \u2014 you must use one set or the other.) An experienced <em>bankruptcy lawyer in KY<\/em> can help you decide which exemptions best serve your needs.\n\nIn many cases, most or all of your property is considered exempt. For example, under Kentucky\u2019s bankruptcy exemptions, you can retain $23,675 of equity in your home ($47,350 if you are a married couple). Suppose your home is worth $200,000 and owe $170,000 on your mortgage. Since you only have $30,000 in equity in your home, your home is protected and exempt provided, however, you can afford to continue to make the mortgage payments.\n\nThe law also allows you to keep specific amounts of equity in vehicles, household good and furnishings and retirement accounts such as 401(k)s.\u00a0 Your <strong><a href=\"https:\/\/farmerwright.com\/louisville-attorney\/\">Louisville KY Chapter 7 bankruptcy lawyer<\/a><\/strong> should be well versed in these exemptions and can explain how a Chapter 7 bankruptcy can help you.\n\nIf you do not have\u00a0nonexempt\u00a0property, your bankruptcy is considered a \u201cno-asset bankruptcy.\u201d In these cases, your bankruptcy trustee will file a no-asset report \u2014 and your creditors will receive nothing in exchange for the discharge of your debts.\n<h2>Filing for Chapter 7 Bankruptcy<\/h2>\n<img decoding=\"async\" class=\"alignleft wp-image-1469 size-medium\" title=\"Bankruptcy Attorney in Paducah and Chapter 7 bankruptcy Hopkinsville\" src=\"https:\/\/farmerwright.com\/wp-content\/uploads\/2018\/07\/Chapter-7-bankruptcy-300x200.jpg\" alt=\"Paducah and Hopkinsville Chapter 7 bankruptcy Lawyer\" width=\"300\" height=\"200\" srcset=\"https:\/\/farmerwright.com\/wp-content\/uploads\/2018\/07\/Chapter-7-bankruptcy-300x200.jpg 300w, https:\/\/farmerwright.com\/wp-content\/uploads\/2018\/07\/Chapter-7-bankruptcy-768x513.jpg 768w, https:\/\/farmerwright.com\/wp-content\/uploads\/2018\/07\/Chapter-7-bankruptcy-1024x683.jpg 1024w, https:\/\/farmerwright.com\/wp-content\/uploads\/2018\/07\/Chapter-7-bankruptcy.jpg 1254w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/>Before you file for Chapter 7 bankruptcy, we recommend that you organize your debts and assets and get an idea of your financial position. It\u2019s important to have a solid understanding of your assets and debts. It is important to disclose all of your property so your attorney can properly advise you on what is best for you and your family.\n\nOnce you have fully compiled and organized your records, you and your lawyer will submit a comprehensive Chapter 7 petition. This petition includes a series of forms that explain your finances in detail. As soon as you file your petition, the bankruptcy court issues an automatic stay.\n\nThis automatic stay is a valuable benefit during bankruptcy. It prevents most of your creditors from attempting to collect your debts. In other words, the stay stops your creditors\u2019 harassing phone calls, letters, wage garnishment, and lawsuits. No creditor can even call you without court permission! However, it\u2019s important to note that you may not get an automatic stay if you have filed bankruptcy more than once within the last year. If you have filed once, your automatic stay may be limited. Discuss your specific situation with a <strong>Chapter 7 bankruptcy attorney in Kentucky<\/strong>.\n\nNext, the court will appoint a bankruptcy trustee. The trustee oversees the liquidation of your assets and the distribution of payments to your creditors. Typically, it takes less than six months to complete a Chapter 7 bankruptcy.\n<h2>Common Chapter 7 Bankruptcy Forms<\/h2>\nIn order to file Chapter 7 bankruptcy, you will have to submit a petition that will include forms with specific information. These forms can be complicated, but your bankruptcy attorney can help.\n\nChapter 7 bankruptcy forms include:\n<h3>Petition for Filing Chapter 7 Bankruptcy<\/h3>\nForm B 101 will include information about you, your address, phone number, and other identifying information.\n<h3>Application to Pay Filing Fee in Installments or to Have It Waived<\/h3>\nForm B 203A\/B will allow you to request a waiver or allowance for your filing fee.\n<h3>Summary of Assets and Liabilities<\/h3>\nForm B 106 will include a broad summary of all of your assets and debts. Other forms will provide more in-depth information about each type of asset or debt you own.\n<h3>Schedules A\/B: Property<\/h3>\nForm B 106A\/B will allow you to list all of your property so that the court understands your assets as you file for Chapter 7 bankruptcy.\n<h3>Schedule C:\u00a0Exempt Property<\/h3>\nForm B 106C allows you to list the property that you feel is exempt, such as a home, car, and other property you wish to keep.\n<h3>Schedule D and E\/F: Creditors<\/h3>\nOn forms B 106D and E\/F, you will list all secured and unsecured creditors. You must list everyone you owe money for all property and other loans.\n<h3>Schedule G:\u00a0Executory\u00a0Contracts and Unexpired Leases<\/h3>\nForm B 106G will allow you to list any contracts or leases that you are named on.\n<h3>Schedule H:\u00a0Codebtors<\/h3>\nForm 106H allows you to list anyone who is also named on loans or other liabilities. Those people will need to be notified that they may be responsible for the debt after you file Chapter 7 bankruptcy.\n<h3>Schedule I: Income<\/h3>\nIn Form B 106I, you will list all of your income from all sources. You must be completely honest about your income so that the court knows whether you qualify for Chapter 7 bankruptcy and whether you can pay any of your creditors.\n<h3>Schedule J: Expenses<\/h3>\nForms B 106J and J-2 will allow you to list all of your expenses and separate them from anyone else in your household.\n<h3>Statement of Financial Affairs<\/h3>\nForm B 107 will include a statement of your financial affairs, indicating that you cannot repay creditors and wish to file Chapter 7 bankruptcy.\n<h3>Statement of Intent<\/h3>\nForm B 108 is a statement of intent, verifying that you have honorable intent in filing Chapter 7 bankruptcy.\n\nOther forms that you will complete deal with your personal information, the means test, and voluntary declarations. It\u2019s important to work with a Chapter 7 bankruptcy attorney to ensure that you submit all of the necessary forms. If you fail to complete one, your petition may be denied or your Chapter 7 bankruptcy may be delayed.\n<h2>How Much Will a Chapter 7 Bankruptcy Cost?<\/h2>\n<img decoding=\"async\" class=\"alignright wp-image-1470 size-medium\" title=\"Chapter 7 Bankruptcy Attorney Paducah and Hopkinsville\" src=\"https:\/\/farmerwright.com\/wp-content\/uploads\/2018\/07\/Chapter-7-bankruptcy-1-300x201.jpg\" alt=\"Chapter 7 Bankruptcy Attorney Paducah and Hopkinsville\" width=\"300\" height=\"201\" srcset=\"https:\/\/farmerwright.com\/wp-content\/uploads\/2018\/07\/Chapter-7-bankruptcy-1-300x201.jpg 300w, https:\/\/farmerwright.com\/wp-content\/uploads\/2018\/07\/Chapter-7-bankruptcy-1-768x514.jpg 768w, https:\/\/farmerwright.com\/wp-content\/uploads\/2018\/07\/Chapter-7-bankruptcy-1.jpg 847w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/>In order to file Chapter 7 bankruptcy, you must submit a filing fee and pay administrative fees to the federal court. That fee is currently $335; however, it does change periodically. If you are unable to afford the filing fee, you may be able to obtain a waiver. Contact a bankruptcy lawyer to find out if you qualify for a Chapter 7 bankruptcy filing fee waiver.\n\nYou will also have to pay for a mandatory credit counseling course. These courses often take place online and can cost between $25 and $35. However, if you are unable to pay for a credit counseling course, you may be able to qualify for a free course or reduction of the fee. This course must be completed before you file for bankruptcy, so contact an attorney right away if you are unsure about your status.\n<h2>How Long Does a Chapter 7 Bankruptcy Take?<\/h2>\nA Chapter 7 bankruptcy can take between four and six months to complete. However, the length of time you will be handling the case depends on how long it takes you to compile your debts and complete bankruptcy paperwork. You must also attend a meeting of the creditors and complete two necessary credit\/debt counseling courses. If you are able to complete this within six months, then your <strong>Chapter 7 bankruptcy attorney<\/strong> can work to get your discharge within that time.\n<h2>Speak With a Chapter 7 Bankruptcy Lawyer<\/h2>\n<em>Chapter 7 bankruptcy<\/em> can give you a fresh start. Too frequently, hard-working people become overwhelmed by debt \u2014 especially after a job loss, medical emergency, or divorce. The lawyers at Farmer and Wright, PLLC are here to help. We combine extensive knowledge of accounting principles and bankruptcy law to our clients\u2019 advantage. <a href=\"https:\/\/farmerwright.com\/contact-us\/\">Contact us<\/a> for a free consultation.\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>If you are overwhelmed by unsecured debts (such as credit card debt and medical bills), you may benefit from a Chapter 7 bankruptcy. When most people file for bankruptcy in Kentucky, they file under Chapter 7. Sometimes called a \u201cliquidation bankruptcy,\u201d it involves selling your\u00a0nonexempt\u00a0assets to pay off your creditors. In exchange, most of your [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"site-sidebar-layout":"right-sidebar","site-content-layout":"plain-container","ast-site-content-layout":"normal-width-container","site-content-style":"unboxed","site-sidebar-style":"unboxed","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"default","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"_links":{"self":[{"href":"https:\/\/farmerwright.com\/wp-json\/wp\/v2\/pages\/1363"}],"collection":[{"href":"https:\/\/farmerwright.com\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/farmerwright.com\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/farmerwright.com\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/farmerwright.com\/wp-json\/wp\/v2\/comments?post=1363"}],"version-history":[{"count":4,"href":"https:\/\/farmerwright.com\/wp-json\/wp\/v2\/pages\/1363\/revisions"}],"predecessor-version":[{"id":10475,"href":"https:\/\/farmerwright.com\/wp-json\/wp\/v2\/pages\/1363\/revisions\/10475"}],"wp:attachment":[{"href":"https:\/\/farmerwright.com\/wp-json\/wp\/v2\/media?parent=1363"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}