LLCs are a popular business form of organization because of strong protections from creditor liability. Although Kentucky LLCs can file bankruptcy, it is much more common that members will file bankruptcy. When an LLC interest has net assets, trustees have only moderate success in reaching the assets of the LLC and distributing funds to creditors….
Do you know about zombie debt collectors? Try to imagine this scenario. First, you’re served with a lawsuit in Kentucky. But, this is after you file bankruptcy for a debt that is 20 years old which you might not remember. Now, some attorneys and companies are suing you. So, you ignore it and they get…
Over and over again we hear the same comment from our clients that attempt loan modification. “Every time I speak with the mortgage company, I get a different person who tells me something different.” “I sent in my paperwork three times because they couldn’t find it.” “I sent in my paperwork only to be told…
After a creditor charges a debt off they often sell it or send it to debt collectors for debt collections. Those debt collectors put accounts on auto-dial so you receive calls at all hours both at home and at work. But, there might be something you can do to stop the calls. If you file…
Bankruptcy and 1099 taxable income When you file bankruptcy or settle a debt a creditor will almost always file a 1099 which claims you made money by bankrupting or settling a debt. If you settle the debt you owe the tax due to an increase in taxable income. But in bankruptcy there is no taxable…
There are some cases where a person cannot obtain the disability discharge but may still be able to obtain an undue hardship discharge in bankruptcy. Kentucky Higher Education Student Loan Corporation “KHESLC” is not the Department of Education. However, a loan may have originated at Kentucky Higher Education Student Loan Corporation and purchased after default…