The Bankruptcy law was written to give all individuals the opportunity to receive a fresh start. The law allows you to either eliminate all of your unsecured debt by filing a Chapter 7 Bankruptcy or it allows you to pay your debt over time and to catch up on your mortgage, student loans and back taxes to reduce the interest rate that you may be paying by filing a Chapter 13 Bankruptcy.
Upon the filing of either type of bankruptcy, the Bankruptcy law requires that all collection activity cease immediately. This includes telephone calls, garnishments, and all collection correspondence, in addition to all collection activity for student loans, back taxes, and under certain circumstances, back child support.
To learn more about our bankruptcy services or if you are in debt and would like to learn more about filing bankruptcy you can contact one of our experienced attorneys at Lawrence & Lawrence, PLLC by emailing LLO@RealLawKY.com or calling (502) 589-5855.
Some of the more common types of bankruptcy proceedings are listed below.
Chapter 7 Bankruptcy
Chapter 7 is designed for individuals who are having financial difficulties and are not able to repay their debts. The filing of a Chapter 7 Bankruptcy immediately stops all garnishments, harassing telephone calls and written correspondence from bill collectors.
Under a Chapter 7 Bankruptcy, you may retain certain exempt property and either surrender or continue to pay for property that is secured by such items as your car or house. Your attorney will help you in making these decisions and explaining to you all that is involved.
The purpose of filing a Chapter 7 is to obtain a discharge of your existing debts. This includes most judgments in state Court, credit card debt, medical debt, signature loans, pay day loans and debts for repossessed vehicles. You may still be responsible for some debts such as taxes, student loans, child support and alimony.
Again, the purpose for filing a Chapter 7 Bankruptcy is to receive a fresh start. To learn more about Chapter 7 Bankruptcy please contact one of our experienced attorneys at Lawrence & Lawrence, PLLC by emailing LLO@RealLawKY.com or calling (502) 589-5855.
Chapter 13 Bankruptcy
Chapter 13 is designed for individuals with a regular and stable source of income who are temporarily unable to pay their debts, but who desire to use their best efforts and good faith to pay their debt in installments over a period of three to five years subject to the protection afforded by the Chapter 13 rules. Some of the most important reasons for filing a Chapter 13 Bankruptcy is to stop a foreclosure on your real estate, to catch up on your payments on your vehicle, to lower the interest rate and payments on your vehicle, to stop garnishments and to pay past due taxes. You can also include in a Chapter 13 Bankruptcy student loans and back child support and maintenance obligations; however, those debts may not be fully discharged at the completion of your Plan.
Under Chapter 13, you will propose a Plan with the Court to repay your Creditors in full or part of the money that you owe them using your future earnings or government benefits such as social security and disability.
You are protected from your Creditors in most cases upon the filing of your case, but your Plan must ultimately be approved by the Court.
Under Chapter 13, unlike Chapter 7, you may keep all of your property, both exempt and non-exempt, as long as you continue to make your payments under the Plan. After the completion of payments under the Plan, most of your debts are discharged, except certain domestic support obligations, student loans and certain taxes. To learn more about Chapter 13 Bankruptcy proceedings please contact one of our experienced attorneys at Lawrence & Lawrence, PLLC by emailing LLO@RealLawKY.com or calling (502) 589-5855.