It’s not meant to be used by those  with the means to pay Louisville Foreclosure Attorney their debts. That’s why every person who seeks Chapter 7 relief has to pass the bankruptcy means test. You’ll need to calculate your average household monthly income and then compare it to the median income in Kentucky for a similarly sized household. If you use Upsolve to file for bankruptcy, you’ll receive all your forms in a downloadable packet. Chapter 7 filings, from start to finish, usually take only a few months to complete.

This extra income could lead to an increase in your monthly payments. If you wish to lower your monthly minimum payment, you must approach the bankruptcy court. Disposable income is money you have left to spend after subtracting your allowed bankruptcy expenses.

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To find out how much equity you have in your home, calculate your home’s current value. Let’s say your home is worth $200,000, and you still owe $150,000 on it. In this case, you have $50,000 in equity on your home, but the Kentucky bankruptcy exemptions would only protect $5,000 of that equity. The Eastern district oversees 22 counties in Kentucky, and has its main court location in Lexington.

Compounding this complexity is §1109(b) of the Bankruptcy Code, which governs the rights of “parties in interest” to participate in Chapter 11 restructurings. In Truck Insurance Exchange v. Kaiser Gypsum Co., Inc. et al., the Supreme Court has brought some clarity to this issue. The Law Office of Allan E. Dunaway PLC is proud to offer Free Bankruptcy Consultations to people in Louisville and the surrounding area. Once your repayment plan is approved, you’ll need to make your monthly plan payments to the trustee. Failure to make timely payments can result in your case being dismissed. If you don’t have any nonexempt assets, your creditors will not receive anything from the bankruptcy estate.

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We’re funded by Harvard University and will never ask you for a credit card or payment. Before declaring bankruptcy, it’s important to review all your options for debt relief. In other words, it’s important to compare other chapters of bankruptcy. As we mentioned previously, Kentucky state law does not govern the process of filing bankruptcy in Kentucky. Rather, federal bankruptcy law determines how the process proceeds. However, Kentucky law does come into play with your bankruptcy exemptions.

We recommend seeking professional help from a Kentucky garnishment lawyer to better understand how to make use of these exemptions. If each day is a struggle to make ends meet, bankruptcy offers you the ability to restructure your budget. I help clients discharge their debts, regain control of their finances, and get the fresh start they deserve. With my history of serving individuals throughout the Louisville Kentucky area for over 30 years, you are in the right place. Once you’ve filed for Chapter 7 bankruptcy, the court will issue a discharge order. This order permanently eliminates your responsibility for most types of debt.

In chapter 13, you will pay back your creditors, including the one trying to garnish you, with plan payments. In a chapter 7 bankruptcy, as long as the debt is dischargeable, they can take no further action against you. Maybe you’re wondering, “How can I stop a wage garnishment immediately? If you are already behind in payments to a creditor or have a pending lawsuit, a garnishment is very possibly the next step. It may be in your best interest to file bankruptcy sooner rather than later in order to prevent that creditor from garnishing the money you need to pay your bills. While filing bankruptcy works briefly, it is not the end-all-be-all for your financial woes.

You don’t have to use a cheap attorney who may not be qualified because money is tight. Before 2019, having the attorney do all the work pre-filing and paying attorney fees after the case was filed was considered unethical. This is because as soon as the case is filed the debt to the attorney for work done pre-filing is stayed and later discharged.

You’ll also need to attend a creditors meeting, typically about days after you file for bankruptcy. At this meeting, your creditors will have the opportunity to ask you questions about your bankruptcy case. Once your petition and schedules are completed, you’ll need to file them with the bankruptcy court in your district. You’ll also need to pay a filing fee, which is currently $338 for Chapter 7 cases.

Medical bills, personal loans, and the majority of credit card debt are examples of unsecured, non-priority debt that can be discharged in bankruptcy. Your non-exempt property will be sold by the Chapter 7 bankruptcy trustee, and the money will be distributed to your creditors. When you’re just scraping by financially, it might seem hard to make a dent in your credit card debt. [newline]Look for strategies to create extra money that you can use to pay off debt if you’re currently on a tight budget or would prefer to earn more than spend less. In certain situations, filing for Chapter 7 will not be enough to wipe away your credit card debt. The discharge of your credit card debt may be challenged by your creditor at any moment.

If this happens, your lender must notify you of the lawsuit by serving you with a summons and a complaint. Kentucky law gives borrowers 20 days after service to answer the complaint. Homeowners who are facing foreclosures should seek legal aid from a qualified foreclosure defense attorney.