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Lexington Bankruptcy Lawyers

What Is Bankruptcy?

Declaring bankruptcy is viewed as a last resort option for people suffering from serious financial hardship. People file for bankruptcy when the sum of their debt is far greater than their assets and they can conceive of no other way to pay off dues like mortgages and credit card bills.

Though having a bankruptcy on your record can damage your credit history of years, it can also set you up for a fresh start. Even so, such a complicated and life-altering decision requires guidance. If you would like a trustworthy and knowledgeable Lexington bankruptcy attorney on your side, contact Gilbert Law Group PLLC.

Whether you are ready to file or simply have questions, you can contact us now at (859) 594-7540 or online. We look forward to helping you get back on your feet!

Types of Bankruptcy

distressed woman staring at unpayed billsMany people struggle with their finances, but this fact alone does not necessitate something as drastic as bankruptcy. Bankruptcy is for people who are so afraid of their mounting debt that they ignore bills and avoid creditors, all the while slipping further and further into crippling debt. If this sounds like you, your situation may be serious enough to warrant declaring bankruptcy.

Once you have established your intention to file, you will have to choose which type of bankruptcy is right for you. The two types that are most common among individuals are typically decided by income.

The two most commonly filed types of bankruptcy by individuals are:

Chapter 7 Bankruptcy

Chapter 7 is also referred to as liquidation bankruptcy or straight bankruptcy. Chapter 7 typically requires the person or business filing to sell some of their assets in order to cover the debt.

For those who simply want to eliminate their debt without paying any of it back, Chapter 7 is the most attractive choice. It is usually suggested to individuals who will not have the financial means to pay off their debt with the next three to five years.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy may work best for you if you are behind on payments, but keeping your property is a priority. It is also suggested for those who have a consistent source of income that could conceivably cover the debts within a period of a few years.

Chapter 13 in KY allows you to make up your overdue payments over time by reorganizing your debt and paying it over a period of three to five years.

How to File for Bankruptcy in Kentucky

Kentucky residents who wish to file for Chapter 7 or Chapter 13 bankruptcy must complete several steps to determine if they qualify.

Some of the necessary steps for filing bankruptcy in KY include:

  • Participate in credit counseling
  • Complete the required paperwork
  • File the forms in Kentucky bankruptcy court
  • Complete debtor counseling before receiving your discharge (notice of approval)

Keep in mind that you must show that you received credit counseling from an agency approved by the U.S. Trustee in Kentucky within six months before filing for bankruptcy and you have to take the debtor education course before you receive a bankruptcy discharge.

These steps can be confusing if you are unfamiliar with legal proceedings, especially if you are already under duress. To successfully get things right the first time around and best set yourself up for discharge, it is best to work with a bankruptcy lawyer in Lexington, KY.

Kentucky Bankruptcy FAQ

Q. How much does it cost to file bankruptcy in KY? The actual cost of filing for bankruptcy in Kentucky will vary depending on which type of bankruptcy you are filing for (chapter 13 or 7). In some cases you may qualify for the fee waiver, which means you won't be responsible for paying a filing fee.

Q. What are Kentucky's bankruptcy exemptions? Kentucky residents may choose to exempt any assets appearing on the Kentucky Exemption List (visit this site for more details). These exemptions allow you to protect up to a certain dollar value things like personal property, vehicles, insurance benefits, etc. Our Lexington bankruptcy attorneys can help walk you through the process and decide what exemptions are right for you.

Q. Can I file bankruptcy on student loans? In most cases you will not be able to wipe out student loan debt while filing for Chapter 7 or 13 bankruptcy. However, if you are able to prove that paying off your student loans will cause you "undue hardship," you may be able to get them discharged. For help determining whether or not you meet this criteria, reach out to Gilbert Law Group today.

Q. How does bankruptcy affect child support? If you are filing for Chapter 7 or Chapter 13 bankruptcy, you will be unable to wipe out unpaid child support. This type of debt is considered a priority and you will still be required to pay child support and make up for any missed payments. Need help negotiating child support? We may be able to help.

How A Bankruptcy Attorney Can Help

Though you can file for bankruptcy on your own, working with someone who understands the system and how to use federal bankruptcy laws to your benefit is invaluable. Partnering with a skilled Lexington bankruptcy attorney at Gilbert Law Group PLLC will protect you from making costly mistakes while efficiently handling the process for you from start to finish.

Our Lexington attorneys will take the time to sit down with you, answer your questions, and explain all your legal options. We will act as your guide the whole way through. We hope to assure you that your bankruptcy is actually the start of a much brighter future for you and your family.

Contact us now to learn more about how we can help you today. We have expert knowledge of KY bankruptcy laws and are here to help you get back on your feet.

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