What types of bankruptcy are available in Kentucky?

Answer:

There are three major types of bankruptcy available within Kentucky. These types of bankruptcy include:

Chapter 11: This is primarily for businesses who wish to restructure. It is sort of like the chapter 13 for businesses, and it allows them to keep running and to renegotiate their debts
Chapter 13: This has become the most common type of bankruptcy since changes to the bankruptcy code in 2005 made it impossible for many people to file for chapter 7. Chapter 13 is a form of personal bankruptcy that is commonly referred to as a "wage earners" bankruptcy. Under a chapter 13, you will be required to repay some of the debts that you have incurred. A repayment agreement, set based on your amount of debt and your monthly income, will be created and will stretch for a 3-5 year period of time. Under this agreement, you'll pay a set amount to the trustee who then gives it to the creditors as required.
Chapter 7: This is another type of personal bankruptcy available in Kentucky. Chapter 7 is called a total liquidation bankruptcy because debts are liquidated or discharged and there is no repayment plan. A chapter 7, however unlike a chapter 11 or chapter 13, requires the sale of much of your personal property. While you can keep some things, like some of the equity in your home and your retirement accounts, most of the items you own as well as the money in your bank accounts will be used to generate some money to repay your debt. Any debt that is still unpaid after your stuff has been sold and your money seized will be forgiven.

To get help deciding what type of bankruptcy is the right choice for you, you should think about speaking with an experienced bankruptcy lawyer.

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