The thought of filing for bankruptcy can be frightening to many people. It is not a decision they come to easily. The stress of limited finances and creditor harassment can cause sleepless nights and poor choices. These poor choices unfortunately may worsen an already serious situation. To avoid making further mistakes, contact a bankruptcy attorney who knows the right steps to take at every moment.
Daniels Associates provides bankruptcy services to those in Louisville and the surrounding areas with advice and assistance regarding bankruptcy. For those who have reached a point where paying off credit card debt, medical bills and other obligations seems impossible, it may be time to consider what bankruptcy can do to get you back on track. Filing for a Chapter 7 bankruptcy could be the best way for you to get the fresh start you need. Call us at 502.583.8300 to schedule your free initial consultation or fill out the online contact form.
Filing Chapter 7 bankruptcy allows you to obtain a discharge of debts such as credit card bills, lawsuit judgments, payday loans and hospital bills. In order to be eligible for a Chapter 7 bankruptcy, you must first pass a means test. If your current monthly income is below the Kentucky or Indiana adjusted median income, you can file Chapter 7 bankruptcy. However, even if your income is above the adjusted median income, you may still qualify to file a Chapter 7 bankruptcy after expenses such as car payments and retirement plan contributions are deducted.
Chapter 7 bankruptcy is sometimes referred to as a “liquidation” bankruptcy because the bankruptcy trustee can seize assets to pay your debts. However, certain property is exempt from seizure. These exemptions vary depending on whether you live in Kentucky or Indiana, so please call your attorney to see if an exemption will allow you to keep your asset, whether we will need to make payment arrangements with the trustee to be able to keep it, or even if the property will need to be surrendered to the trustee. That being said, generally, you are allowed to claim an exemption amount for your home, vehicles, and personal property. We are very skilled at using exemptions to help our clients retain important items.
In addition to eliminating unsecured debt, filing Chapter 7 bankruptcy puts an immediate stop to:
- Home foreclosure
- Wage garnishment
- Creditor harassment
If you don’t qualify for Chapter 7 bankruptcy, you may still be able to obtain the debt relief you need by filing a Chapter 13 bankruptcy.
Please note that there are certain debts that cannot be discharged in Chapter 7 bankruptcy, including child support, and certain taxes and debts that are secured by property such as your home and your car. However, you can keep these assets by making payments and filing a reaffirmation agreement with the court.
Contact a Kentucky and Indiana Chapter 7 Lawyer for a Free Consultation
To schedule a free initial consultation to discuss your financial situation, please call 502.583.8300 or contact Daniels Associates online.