Most people will be able to protect their essentials, such as Louisville Bankruptcy Attorney their home, their car, and even tools of the trade. To determine which chapter you qualify for, you’ll have to take a Kentucky bankruptcy means test. The means test will calculate your average monthly income and then determine whether you make too much money to file Chapter 7. The income limit for filing Chapter 7 also takes into consideration the number of people in your household. Each state, including Kentucky, has its own laws and regulations when it comes to bankruptcy filing. However, the overall processes aren’t very different from state to state.

Personal Property Exemptions

We recommend seeking professional help from a Kentucky garnishment lawyer to better understand how to make use of these exemptions. O’Bryan Law Offices can help you file for bankruptcy, rectify your financial situation, and help you out from under crushing debt. Even though the dip in their credit score hurts at first, the effects won’t last forever. Even if you’re not sure that bankruptcy’s right for you, try to keep these ideas in mind as you deal with your debt problems.

Working with an attorney may even give you the leverage you need to strike a deal with your lender. We generally recommend speaking with a lawyer as soon as possible after you receive the breach letter. Waiting too long could prevent attorneys from being able to help you effectively. Let’s say you have fallen behind on your mortgage payments, but the foreclosure process has yet to officially start. The servicer of your mortgage can begin to charge fees during this time.

If you need a competent Louisville bankruptcy lawyer to help you with any issue concerning consumer or business bankruptcy, look no further than Schwartz Bankruptcy Law Center. However, it isn’t the end-all-be-all solution for credit card debt, medical bills, federal student loans, and other forms of debt. Debt settlement companies that offer these services don’t always address poor spending and budgeting habits if you have them.

The most common kind of bankruptcy filed by individuals is Chapter 7 bankruptcy. This is when the court appoints a trustee to oversee the sale of your assets. Any valuable possessions you have may be sold to pay off your obligations. Although courts may provide exemptions for essentials such as your home, car, or retirement savings, this is not a certainty. You can declare for bankruptcy more than once in your lifetime.

Getting A Speeding Ticket In Kentucky

It refers to other codes, such as the IRS code, in determining whether student loans and income taxes can be discharged. After the Chapter 7 discharge order has been issued, all debt collectors are required to stop any collection efforts on the discharged debts. This means you will no longer have to deal with debt collector calls or wage garnishment attempts.

If you have a plane or second home in California, please tell your attorney. If you file for Chapter 7, this will stop the foreclosure, but only for a certain period of time. You may be able to save your home for a few more months, which could give you the breathing room you need to prevent the sale altogether. We recommend speaking with a Chapter 7 lawyer for more information on how this chapter of the Bankruptcy Code can help you. Federal law prohibits beginning a foreclosure before the borrower is over 120 past due on their mortgage payments.

Kentucky Bankruptcy Means Test

While creditors do not typically attend this meeting, you will answer questions under oath from the Chapter 7 Trustee about your debts and property. Bankruptcy filers may retain non-exempt property in a Chapter 13 bankruptcy, but they pay creditors for its value during a 3-5 year repayment plan. Filers must pay either the value of their non-exempt property or their disposable income – whichever amount is greater. Filing bankruptcy stops most wage garnishments, the process could also save your job and ensure that you don’t lose all the assets that you’ve worked so hard to acquire.

If they choose to sell, they may do this either privately or publicly. Privately entails selling to a single person, while publicly usually entails an auction. Kentucky law requires lenders to notify you of the date, time, and place of which they will be auctioning off your car. You can legally attend the auction and bid on your own vehicle, given you have the means to pay for it.

However, be aware that the percentage of pay to repay child support, student loans, or taxes could be higher. If you owe back taxes, the federal government can garnish your wages through tax levies. However, there is a certain weekly exempt amount that you can take advantage of.

He is also responsible for auditing each case to ensure the petition is accurate and that the debtors are honestly reporting assets. While the Panel Trustees are auditing the debtor, the US Trustee sometimes audits how the attorney has prepared a case. In order to redeem the property, you must pay off the amount that you owe on your loan before the foreclosure sale begins. In Kentucky, you also have what is known as a redemption period.

Of course, the Trustee is paid a commission for any asset he may be able to take. Interestingly, this commission starts at 25% and decreases on a sliding scale. The best time to hire a foreclosure attorney is before the foreclosure process officially begins. This way, you can explore all of your options ahead of time, which could allow you to avoid the process completely.

We can also assist you in filing for bankruptcy, should it come down to that. After filing, you’re required to complete a second bankruptcy course. This course is about financial management and debtor education.

In this way, we protect our clients from being bogged down with attorneys’ fees when they’re already struggling. We can also advise you on the best course of action for your individual situation. Filing for Chapter 13 bankruptcy is another option available for homeowners. You will have to prepare a repayment plan for your creditors and have it approved by your bankruptcy trustee. As with Chapter 7, you’ll get an automatic stay when you file, and it will last as long as the bankruptcy proceedings are in effect.

It’s important to understand that states have the right to impose stricter garnishment limits. However, Kentucky adheres to federal law when it comes to garnishments. Gordon Wright is past Chair of the Firm’s Estate Planning Practice Group and a member of the Firm’s Trusts, Estates & Personal Planning Service Team. He concentrates his practice in the areas of estate planning and estate administration, employee benefits and taxation. Gordon is active as a Fellow in the American College of Trust and Estate Counsel (ACTEC) where he serves on the Employee Benefits Committee and the Fiduciary Income Tax Committee. We’re just a 20-minute drive west of Mount Washington, so don’t hesitate to contact us if you’re in need of legal help.