Chapter 7 & Chapter 13
Chapter 7 & Chapter 13
Are you facing foreclosure? A wage garnishment? Are debts piling up to the point where you can’t seem to make ends meet every month?
If you are facing a situation like this, bankruptcy may be an option for you. The Lexington Kentucky bankruptcy attorneys can help you file for bankruptcy to seek debt relief, to stop harassment from creditors and debt collectors, and to get the fresh start you deserve.
Brackney Law Office, PLLC helps debtors obtain relief under Chapter 7, Chapter 11, and Chapter 13 of the Bankruptcy Code. Few people seek out bankruptcy, but sometimes it is the best option. I take the time to see what non-bankruptcy alternatives might work for you and to discuss with you your bankruptcy and non-bankruptcy options.
To learn more about your options, contact Brackney Law Office, PLLC. You can either call (859) 559-4648 or contact us.
Chapter 7 Bankruptcy
Brackney Law Office, PLLC helps you determine whether you should file for bankruptcy, when you should file for bankruptcy, and what kind of bankruptcy is right for you. For most debtors, a Chapter 7 bankruptcy will eliminate all of your debts and give you a fresh start. To find out if you are eligible for Chapter 7 bankruptcy relief and if it is right for you, please contact us to schedule a consultation.
HOW DOES CHAPTER 7 WORK?
In a Chapter 7 bankruptcy, a trustee is appointed to administer your case soon after it is filed. The trustee will review your bankruptcy petition and schedules along with the deeds, mortgages, vehicle titles, and other documents. The Court will schedule a 341 Meeting of Creditors about six weeks after the bankruptcy is filed. At that meeting, the trustee will ask you a series of questions to verify your identity and to see if there are any assets in your case that can be administered for the benefit of your creditors. And we’ll be sitting next to you during this process.
Most Chapter 7 bankruptcies are “no asset cases” meaning that there are no assets for the trustee to administer. That’s because individuals are provided with certain exemptions under both state and federal law. By pleading the exemptions, most of your “stuff” can be protected in a Chapter 7 bankruptcy.
Businesses can file Chapter 7 bankruptcies as well, but businesses don’t have any exemptions. When a business files for Chapter 7, you must stop operating your business at the time the bankruptcy is filed. The court-appointed Chapter 7 trustee will then have the role of liquidating any business assets and distributing the proceeds to the business creditors.
To find out if you or your business is eligible for Chapter 7 bankruptcy relief and if it is right for you, please contact me to schedule a consultation.
Chapter 13 Bankruptcy
At Brackney Law Office, PLLC, I will explore with you your bankruptcy and non-bankruptcy options so that you have the information you need to determine what is best for you and your family. To learn more about Chapter 13 bankruptcy relief and to find out if it is right for you, please contact me to schedule a consultation.
HOW DOES CHAPTER 13 WORK?
Designed for those with regular income, Chapter 13 bankruptcy allows debtors to repay a portion of their debts through a plan that lasts for a period of 36-60 months. Your plan must be confirmed, or approved, by the bankruptcy court. We will look at your current income and your expenses to determine your disposable monthly income. Each month during the plan, you’ll pay your disposable monthly income to a trustee who will distribute the money to your creditors. After you’ve made all the payments due under your plan, you can obtain your discharge. This is, of course, a simplified version of the Chapter 13 process.
WHY CHAPTER 13?
Because of the Means Test which compares a debtor’s household income to the median income for a similarly sized household in the same state, some debtors cannot file for Chapter 7 and must file for Chapter 13. But there are several reasons why a debtor may voluntarily elect to file a Chapter 13 bankruptcy rather than seek relief under Chapter 7:
• Chapter 13 provides the opportunity to cure arrearages on a mortgage or a car loan in order to save your house or save your vehicle.
• If you’ve previously filed a bankruptcy, you might not yet be eligible to file a subsequent Chapter 7 bankruptcy. But the waiting period for a Chapter 13 is shorter.
• Chapter 13 allows debtors to obtain a discharge of certain debts that are not dischargeable under Chapter 7.
• Some of the attorney fees in a Chapter 13 can be paid through the plan whereas all attorney fees must be paid prior to filing a Chapter 7.
To learn more about whether Chapter 13 is right for you, please contact me.
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