How to File Bankruptcy in Louisville Kentucky.
Ok here in 60 seconds is what a client needs to know about how to file bankruptcy in Louisville Kentucky. The most important key points are here. Please read the manual when you file bankruptcy in Louisville Kentucky. Take 3-4 hours to read the manual and you will learn the tricks and traps. You will save thousands of dollars, get more benefits from filing and have fewer problems when you file bankruptcy in Louisville Kentucky .
Why we supply documentation to the Bankruptcy court.
Bankruptcy Judges and Trustees will trust but verify your petition when you file bankruptcy in Louisville Kentucky. Bankruptcy Trustees are not going to take your word for it that you are poor, have no substantial assets and need help. The documentation you provide proves you didn’t give away a house to your mother just before filing and you earn less than 150,000 a year. Trustees look over your checking account for any expense over 500-600 dollars and your tax return to prove income, and expenses.
You have to take 2 classes.
You have to take Credit Counseling before you file and Debtor Education after your file. If you don’t take the credit counseling class you can’t file. If you don’t take the Debtor Education class you won’t get the discharge plus if the case closes it will cost $635 to reopen the case and file it after they close the case.
Accurately file bankruptcy in Louisville Kentucky.
The Trustee and the judge have a job to do. If you make it hard for them to do their job, it will be hard for you. The Chapter 7 Trustee makes money in two ways. First, he makes 70 dollars from every case he looks over. He can do that in 5 minutes with a good petition. If you file a sloppy petition it may take hours or days. A Trustee would like to process 12 debtors in court every half hour. You do not want to forget to list your mortgage or home. He will suspect fraud and take extra time investigating your case if you leave items out or have a sloppy petition.
Saving property in Bankruptcy.
The second way a Trustee makes money is he occasionally finds property he can sell and keeps about 25%. You have exemptions which allow you to keep a reasonable amount of equity in a car, home, household goods, and tools. It is rare to lose property in bankruptcy. It most often happens when the bank fails to properly file a mortgage or car lien. If you have a home mortgage or car loan you are supposed to Reaffirm (pay payments) Redeem (purchase the car or boat) or Surrender the property. Some persons continue to make the payments without reaffirming. Technically the ride through option does not exist and lenders may not report your payments. But ride throughs are how property is kept if the lender fails to send a reaffirmation agreement or you can’t show the ability to make the payment.
Chapter 7 or 13.
A Chapter 13 can do everything a Chapter 7 can and more. But don’t file it unless you need the extra tools. It takes 3-5 years to complete and costs more than a Chapter 7. These special tools allow you to manage a foreclosure, tax debts and student loans better. You can catch up the payments on a home or car in a Chapter 13 over 5 years. A Chapter 7 only lasts 4 months so it will only temporarily delay a foreclosure and avoid tax problems. A Chapter 7 will not help catch up a mortgage foreclosure. You can often strip a second mortgage in a Chapter 13 if the mortgage is unsecured and has no equity. In a Chapter 13 you can lower the interest rate on personal property loans. A Chapter 13 often values collateral and only repays the secured portion in a Cramdown. There are many tools a Chapter 13 has, which a Chapter 7 just doesn’t have. A Chapter 13 may be required if you filed a Chapter 7 within the last 8 years because you can only file one Chapter 7 every 8 years and get a discharge. If you earn too much income you may be forced to repay at least part of your debts in a Chapter 13. Chapter 7 it may not be the best choice if you have certain debts that need the Chapter 13 tools for homeowners and persons with long term medical problems, taxes or student loan collections.
Managing Non Dischargeable Debts
SUPER debts “priority debts” (student loans and IRS taxes less than 3 years old) survive a Chapter 7 bankruptcy and go right back to collections as soon as a Chapter 7 is over. You can pay down these debts inside a Chapter 13 paying little or nothing to unsecured creditors. When you file a bankruptcy a temporary court order called the stay goes into effect. Some people want to file Chapter 13 so IRS and Student loan garnishments go away for 3-5 years. The garnishments go away. Non priority Taxes and student loans may be paid little or nothing. This often makes even the IRS and student loans give up. The stay does not apply to child support and alimony. But domestic support can be repaid in a Chapter 13, at the expense of credit card and other debts.
Finishing your Bankruptcy
There is probably just one hearing your will go to called the 341/confirmation hearing. At that hearing you must bring your photo id and social security card. Be sure you go to the Federal Courthouse at 601 W Broadway on the 5th floor. Every year one or two people show up where you pay traffic tickets in state court or even worse at the Trustee’s office. These hearings only last about 5 minutes with questions about how much your car or home is worth. If you have taken the second class there should be little or nothing left to get your discharge for a Chapter 7 case. In a Chapter 13 you will need to make the payments on time, turn in an annual budget and turnover your tax returns annually until you get the discharge. A Chapter can be adjusted. If you become short term disabled, the payments may be temporarily suspended or plan may be modified to make a Chapter 13 affordable.
A life after bankruptcy
You deserve a better life after bankruptcy. The problems should be over. But if you don’t get a 725 credit score or you don’t know how to budget after the discharge, you will go back to pain and suffering. Repeat bad habits get the same results. Look at our pages on how to get a 725 or better fico score and sign up for the free bankruptcy version of financial peace university by Dave Ramsey on our website. Our bankruptcy manual is about 60 pages plus the appendix and takes about 3 hours to read. The average person will save $8,000 – $10,000 just by learning and reading how to file bankruptcy in Louisville Kentucky. This is because bankruptcy is where you work with a qualified experienced attorney to get the benefits. By understanding how to do it you get more out of it. If you have questions or need to file come see us when you need to file bankruptcy in Louisville Kentucky