Chapter 7 is the most common type of bankruptcy filed. Nearly 70% of individuals and businesses seeking legal debt relief file under Chapter 7 bankruptcy. Also known as a liquidation bankruptcy, Chapter 7 bankruptcy can provide a debt-free, fresh financial start. Chapter 7 bankruptcy is a liquidation where the trustee collects all of your assets and sells any assets which are not exempt. The trustee sells the assets and pays you, the debtor, any amount exempted.

Certain debts cannot be discharged in a Chapter 7 bankruptcy, such as alimony, child support, fraudulent debts, certain taxes, student loans, and certain items charged. In most Chapter 7 cases, the debtor has large credit card debt and other unsecured bills and very few assets. In the vast majority of cases a Chapter 7  bankruptcy is able to completely eliminate all of these debts.

You may keep certain secured debts such as your car or your furniture or house by reaffirming those debts. To do so, you must sign a voluntary “Reaffirmation Agreement”. If you decide that you want to keep your house or your car or your furniture, and you reaffirm the debt, you cannot bankrupt (or wipe-out) that debt again for eight years. You will still owe that debt and you must continue to pay it just as you were obligated to continue to pay it before you filed bankruptcy. In order to reaffirm the debt, you must also bring it current. In other words, if you are three or four months behind, then you must pay the back payments which are due in order to reaffirm it.

If you are considering declaring Chapter 7 bankruptcy, the Rose Law Offices can help! Filing any type of bankruptcy is a complicated process involving strict guidelines, timetables, and documentation. Our experienced Lexington, Kentucky attorneys can provide you with the insightful and strategic legal counsel you need to navigate your Chapter 7 bankruptcy procedures.

Chapter 7 bankruptcy can cancel most or even all of your debt. However, not everyone will qualify. Federal bankruptcy code mandates that individuals or businesses seeking Chapter 7 bankruptcy debt meet certain criteria under the "means test." This formula analyzes your monthly income for the past 6 months and the median income for your local area, then compares it with the amount of debt applied to your financial circumstances. If you "fail" the means test, declaring Chapter 13 bankruptcy may be your ideal option.

Declaring bankruptcy is complex and strictly governed by both state and federal statutes. Have our skilled bankruptcy attorney by your side to ensure that your rights are protected and to assist you in complying with the numerous laws, regulations, and requirements.

Our experienced Lexington, Kentucky attorneys can provide insightful counsel and assertive representation through all aspects of a Chapter 7 petition, including:

Completion of bankruptcy petition forms:  Filing for bankruptcy involves a lengthy amount of forms and disclosure statements. Our insightful bankruptcy attorneys can provide the counsel and the guidance you need to complete the required forms accurately and in a timely manner.

Automatic stay enforcement:  From the moment your petition is filed, creditors are legally obligated to stop all forms of collection, including phone calls and letters. If any type of collection harassment continues after this date, we can provide the aggressive representation you need to halt their illegal actions.

Creditor's meeting:  The bankruptcy trustee runs the meeting designed to ascertain the nature of your debts, current financial situation, and your ability to meet any of your financial obligations. Any of your creditors, such as your home or auto lender, may also be present to garner and / or offer information. The Rose Law Offices in Lexington, Kentucky can provide the assertive representation you require to ensure your rights are protected during the creditor's meeting.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy or reorganization creates a plan for individuals to pay off debts over a designated period of time, while still retaining ownership of his or her property. If your debt is deemed too high, you may not qualify to for Chapter 13 bankruptcy reorganization.

Our experienced team at the Rose Law Offices can discuss with you the advantages and disadvantages of filing a bankruptcy and help you decide if petitioning for Chapter 13 reorganization would be right for you.

The primary mechanism of Chapter 13 reorganization is the repayment plan, allowing the petitioner to make monthly payments to lessen their debt obligations. A court-appointed official, called the bankruptcy trustee, will collect the monies and distribute them among your creditors.  In order to successfully discharge your debt, your assigned payments must be paid in full and on time each month.  All repayment plans must be approved by the courts before implementation. If the court has reason to believe you have not reported all of your current income, or have overstated your essential living expenses, they may not approve the plan.

Certain debts are given priority and must be paid or continued to be paid each month. These can include:

  • Filing fees
  • Trustee's commission
  • Alimony and child support, including past due payments
  • Tax debts
  • Wages owed to employees
  • Mortgage payments if you plan on retaining ownership of your home
  • Other secured debts such as car payments

Unsecured debts, such as credit card debt, utility expenses, and hospital bills may be erased or negotiated to a lessor financial obligation, depending on the amount of income left after priority payments are made. The length of the repayment plan is determined by how your income compares with the median monthly income of the state. Generally, repayment plans take between three to five years to complete.

Chapter 13 bankruptcy may be the effective tool you need to ease the burden of overpowering debt. A constructive payment plan can leave your creditors at bay and alleviate the anxiety of determining which monthly bills to pay within the limits of your income. If you are considering reorganizing your financial obligations through a Chapter 13 petition, contact the Rose Law Offices in Lexington, Kentucky. Filing for Chapter 13 immediately implements an automatic stay, which means creditors are barred from further collection attempts the moment you file for bankruptcy. Our firm is deeply committed to protecting your rights and well-being, including taking aggressive action to halt illegal collection tactics.

Settlements / Debt Restructuring

The Rose Law Offices also provides alternatives to Chapter 7 and Chapter 13 bankruptcy such as restructuring your debt with our attorneys working directly with your creditors. For additional information, click here or contact us today!

Kentucky Bankruptcy, Settlements / Debt Restructuring

We know it can be intimidating to talk to a lawyer, especially about Chapter 7 or Chapter 13 Bankruptcy, Settlements / Debt Restructuring. But the most common things we hear at the end of our first consultation is “I feel better” and “I wish I had met you sooner.” 

Bankruptcy, Business, Injury - Lexington, Kentucky

Lexington based law firm serving Lexington, Georgetown, Winchester, Richmond, Ashland, and other areas of Kentucky, including federal courts.

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