BANKRUPTCY LAWYERS IN LOUISVILLE, KY
For people in financial trouble, filing for bankruptcy may be necessary, especially if they want to save their home. The two most common types of bankruptcy are Chapter 7 liquidation and Chapter 13 reorganization. Chapter 12, which is like Chapter 13, is available for farmers and fishermen with a steady yearly income.
Don’t go through this alone. If you’re considering filing for bankruptcy, fill out this form for a free case evaluation to learn about what’s best for your situation.
Chapter 7 Liquidation
You must be able to qualify for Chapter 7 by completing a “means test.” You must have little to no disposable income to be eligible for Chapter 7. If you want to keep your home, it may be better to file Chapter 13. While there is a homestead exemption when filing for Chapter 7, it may be more difficult to qualify. You also have additional exemptions available for some personal property.
Chapter 13 Reorganization
Most people who file for bankruptcy choose to go with Chapter 13. Once you file the petition and the schedules required by the bankruptcy court, you will need to complete a Chapter 13 plan. The plan shows how your disposable income should be distributed among your creditors. A Chapter 13 bankruptcy plan allows you to make payments on debt for 3-5 years, though most debtors pay over three years. Depending on your disposable income, you may end up paying some of what is due to your creditors or paying all of them off. If you are behind on your mortgage and want to keep your home, you may add the mortgage to the plan. However, you must pay your mortgage on time and keep it current from the time of filing.
Chapter 12 for Farmers and Fishermen
Chapter 12 allows farmers and fishermen with a regular annual income to reorganize their debts. You will have to propose a plan, just as you would under a Chapter 13. The plan under Chapter 12 also goes for 3-5 years. The major difference between Chapter 12 and Chapter 13 is the former allows a farmer or fisherman to continue operating his or her business during the bankruptcy process.
Some debts are not dischargeable through bankruptcy. For example, bankruptcy cannot discharge alimony and child support. Certain taxes and student loans are not usually dischargeable either. However, if you can demonstrate extreme hardship, you may be able to get them discharged. You must show that the hardship would continue for the life of the loan if you try to get student loans discharged.
Contact Bankruptcy Lawyers in Louisville KY
If you’re considering bankruptcy, you’re probably in a stressful financial situation looking for relief. Don’t go through this alone. Choosing the right law firm to have by your side can make all the difference. The bankruptcy attorneys at Morgan & Morgan are passionate about alleviating economic hardships and granting your family a clean slate to start over. With more than 400 attorneys and 50 offices nationwide, we have the resources and reach to provide you the best service possible. You deserve quality legal representation to help you through these trying times. Discover what we can do for you by filling out this form today for a free case evaluation.