BANKRUPTCY LAWYERS IN LEXINGTON, KY
Bankruptcy Lawyers in Lexington, KY
If debt is keeping you up at night, you’re not alone. Every year, hundreds of thousands of people file for bankruptcy after reaching a point where they’re no longer able to make timely payments on their mortgages, auto loans, and credit card debt.
Although it’s an option of last resort, filing for bankruptcy can give you the clean slate you need to get back on your feet.
Are you thinking about filing for Chapter 7 or Chapter 13 bankruptcy? The bankruptcy lawyers at Morgan & Morgan can help. Morgan & Morgan understands the difficulties of struggling financially and want to be by your side during these trying times. We’re passionate about fighting for the best outcome regarding your financial future and granting you and your family peace of mind.
Chapter 7 or Chapter 13 Bankruptcy?
Under the terms of Chapter 7, you must sell, or liquidate, your nonexempt property. The resulting funds go to pay your creditors. Nonexempt property includes any non-essential assets you may own and excludes your primary residence. Without nonexempt property, your creditors recover nothing.
Chapter 7 allows you to discharge your debt quickly, but you must be able to prove to the court that you lack the disposable income to make payments. You will not be able to make any back payments to your mortgage loan or stop foreclosure. However, you will walk away with a clean slate.
The other bankruptcy option available to individuals and sole proprietors is Chapter 13, or reorganization bankruptcy. Under Chapter 13, you restructure your debt rather than liquidating your assets. After restructuring, you discharge it via a repayment plan over the course of three to five years. Depending on the amount of disposable income you have, your creditor may choose to write off some of the debt.
Chapter 13 allows you to keep your assets and to take steps to avoid foreclosure. Generally, it has less of an impact on your credit than Chapter 7.
What Is the Process for Declaring Bankruptcy?
The first step is to file the paperwork. You must pay court fees in order to do so.
Two weeks after the paperwork is in, you will attend a creditor’s meeting in court where you’ll answer questions about your financial situation.
Within 180 days of filing, you must take a credit counseling class.
If you filed Chapter 7, you must liquidate or abandon your nonexempt assets. If you filed Chapter 13, you are assigned a payment plan that prioritizes your debt, some of which must be paid in full.
Not all debt can be discharged through bankruptcy. Student loans, alimony and child support, and money owed to the IRS are not dischargeable under most circumstances.
Morgan & Morgan Can Help
If you’re a Lexington, KY resident considering bankruptcy, it’s important to contact Morgan & Morgan. Having the right law firm on your side can make all the difference. With more than 400 attorneys and 50 offices nationwide, we have the resources and reach necessary to provide you the best service possible. And, you’ll get 24/7 open communication with your case staff via our mobile app. We pride ourselves on transparency. Our bankruptcy attorneys will offer their expert insight into your financial situation and assess if filing for bankruptcy is the best course of action. If it is, we’ll help you navigate every phase of the process so you and your family can enjoy peace of mind once again. Fill out a no-cost case evaluation form today to discover what Morgan & Morgan can do for you.