If debt has taken over your life, personal bankruptcy can give you a clean start. For individuals and families, that almost always means Chapter 7 or Chapter 13. Here is how to tell which one fits.
Chapter 7: a fresh start
Chapter 7 wipes out most unsecured debt, like credit cards, medical bills, and personal loans. It usually finishes in about 4 to 6 months. To qualify, you take the means test, which compares your income to the Kentucky median. Many people keep everything they own because exemptions protect it.
Chapter 13: a payment plan
Chapter 13 sets up a repayment plan that runs 3 to 5 years. It fits people who earn too much for Chapter 7, or who want to catch up on a house or car. At the end of the plan, the rest of the qualifying debt is discharged. Chapter 13 can also stop a foreclosure and let you pay back the missed payments over time.
What bankruptcy stops right away
The day you file, the automatic stay begins. It stops most collection in its tracks. That includes wage garnishments, collection calls and letters, foreclosure sales, and repossession and lawsuits. Creditors must stop until the court says otherwise.
Will you lose your property?
Most people do not. Kentucky lets filers choose the federal exemption list, which protects more for the typical family than the state list. We review what you own and apply the set of exemptions that protects the most.
Why choose Nick Thompson
Nick Thompson has practiced law for more than 35 years, in Kentucky since 1991. He prepares each client’s petition personally and holds U.S. Tax Court License number 51, which helps when tax debt is part of the picture. Our office is at 800 Stone Creek Parkway, Suite 6, in Louisville.
Call 502-625-0905 for a free consultation. We will look at your debts and your income and tell you which chapter gives you the cleanest start.
Frequently Asked Questions
It depends on your income and your goals. Chapter 7 erases debt fast. Chapter 13 sets a payment plan and can save a home. We help you compare both in a free consult.
Usually not. Kentucky filers can use the federal exemptions, which protect a home, a car, and household goods for most families.
Right away. The automatic stay takes effect the day you file and stops most calls, garnishments, and lawsuits.
Yes. The first visit is free. Call 502-625-0905. We serve Jefferson, Oldham, Bullitt, Spencer, Nelson, and Meade counties.