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Chapter 7 Bankruptcy in Louisville KentuckyNick C. Thompson2020-09-18T19:16:39-04:00
Chapter 7 Bankruptcy is best for persons that have less than 25,000 per person in equity in their home and average or below-average income and a majority of unsecured debts. But, most importantly, filing your Chapter 7 bankruptcy in Louisville can be quick and inexpensive. Do you know that even if you have slightly more than the exemptions, you can still file?
Chapter 7 Bankruptcy in Louisville
With Chapter 7, the process is over in approximately four months. Unlike Chapter 13, there are no payments to the court. You don’t have to turn in an annual budget, file a yearly budget, lose your tax refund, or ask permission later to sell or buy a property. Of course, there are also other reasons to choose Chapter 7. Some of those reasons include the following:
Over 99% of debtors keep everything they want to keep. It is also allowable to keep a substantial amount of property in Chapter 7. In fact, people turn over property to the Trustee to get a Chapter 7 discharge less than 1% of the time. When that happens, it’s usually a conscious decision to give up a car to get rid of a million dollars of debt. Nice trade. We plan exemptions, so you keep property unless you don’t want it.
Chapter 7 Bankruptcy cost less than a Chapter 13.
Chapter 7 Bankruptcy is faster than Chapter 13. The collection calls stop immediately. In fact, many of our clients have to pick up the phone to see if it’s still working.
Qualifying for Chapter 7 Bankruptcy
Over 97% of Debtors qualify for Chapter 7. However, some law offices don’t look for the deductions from income to allow their clients to qualify. Instead, we look for the deductions so that higher-income applicants qualify to file a Chapter 7. Unfortunately, if you don’t look for these deductions, it might force you to file a Chapter 13. Since the attorney makes triple the attorney fee in Chapter 13, some attorneys don’t look for those deductions. We do.
Chapter 7 Bankruptcy is Simple
Filing for Chapter 7 Bankruptcy is a relatively simple process. Here are the steps you need to take:
Gather a few standard documents.
Fill out an intake form.
Take a counseling class before filing and a debtor education class after filing.
A hearing is held about 4-6 weeks after you file and typically lasts less than 5 minutes.
When is it Right to File a Chapter 13?
Chapter 13 has special situations in which it is the best choice.
You have too much money left over for your family size, so you can’t file as a Chapter 7.
You can only file one Chapter 7 discharge every eight years.
Your bankruptcy includes a cosigner that you must protect. Only a Chapter 13 will protect them because it pays 100% of that cosigned debt, .
Only Chapter 13 has special tools for paying and managing secured and priority debts. These are most often taxes, foreclosures, and student loan debts.
Only a Chapter 13 can strip a second mortgage with no equity.
We have impoverished clients who file Chapter 13 who cannot afford Chapter 7. That gives them a 36 month Chapter 13 with a 75-100 dollars per month payment. This still gets them the discharge.
If these situations don’t apply to you then, you probably shouldn’t be in Chapter 13.
Chapter 7 Makes it Easy to Eliminate Unsecured Debt
Filing Chapter 7 bankruptcy is a simple, straightforward way to eliminate most debts, especially unsecured debt. This includes credit card debt, bank loans, medical bills, pay-day loans, and old utility bills. Its design is to give consumers a fresh start while quickly halting creditor garnishments, lawsuits, and harassment.
However, there are some long-term debts like mortgages and student loans, which are not manageable in Chapter 7. Debts like taxes and mortgages can often be modified or paid back over time and in part. In those cases, you may need to file Chapter 13.
Not all attorneys are created equal — some work to become outstanding in a specific area such as working with foreclosures and student loans. First, do your homework by reading reviews. Then, find someone who knows what they are doing with your foreclosure, student loan, or tax debt.
You Must Work with an Attorney to Get All the Benefits
Every case is different, and this isn’t like ordering pizza. If a pizza isn’t right, you can blame Papa Johns because you didn’t bake it. But, you have to work together with the attorney to get the bankruptcy done right. It is horrible when the attorney doesn’t know the recipe for the pizza or how to bake it and unfortunately, some attorneys don’t. For instance, the client has to work with the attorney to modify and strip the mortgage or back out of default.
We begin by educating our clients with resources on our website. Then, I personally draft petitions with clients to ensure the petition is prepared correctly. I never hand you over to a paralegal. After the Chapter 7 petition filing, the client only needs to take the second class and show up in court. Additionally, there are times when we do a redemption to purchase the auto, a loan is reaffirmed, or the client asks us to remove a judicial lien.
Filing Chapter 7 by Yourself is Very Overwhelming
The information quickly gets overwhelming and full of complications, so, you must get quality advice. In fact, it’s nearly impossible to find your way without the right attorney. So, do not hesitate to give us a call today. We are always available to discuss your case and your options.
One thing is for certain–timing is of the essence! When the bank files foreclosure, they hire an attorney at $250 to $350 per hour. Unfortunately, he gets paid to take your home as quickly as possible. In fact, his wages come out of the equity of your home. If the credit card company also is suing, do not wait until after they garnish 25% of your wages and attach your home.
But, if you don’t wait too long, we might be able to get garnished wages or bank accounts funds back. The sooner you file a Chapter 7 or 13, the faster this stops. The sooner you see us about filing, the more options you have. Call today for your free consultation.
If you need help with your Chapter 7 bankruptcy filing, you are in the right place. Contact my office right away for more information. Nick C. Thompson, Attorney: 502-625-0905