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chapter 7 bankruptcy Archives

What debts cannot be discharged in a Chapter 7 bankruptcy?

Many Kentuckians who seek discharge of their debts under Chapter 7 of the United States Bankruptcy Code are surprised to learn that some debts cannot be discharged. The types of debts that cannot be discharged in a personal bankruptcy are enumerated in the Bankruptcy Code, and this post will provide a summary of these kinds of obligations.

Bankruptcy under Chapter 7 of the Bankruptcy Act

Kentuckians who struggle with debt, whether from overuse of credit cards or medical bills or other unexpected financial catastrophe, often view bankruptcy as a means of relief. However, personal bankruptcy comes in two different flavors known by their location in the United States Bankruptcy Act: Chapter 7 and Chapter 13. Chapter 7 is generally used to apply a debtor's assets to pay debts and to discharge all debts that are not repaid or settled. Chapter 13 is used to establish a plan to reorganize those debts and pay them off over time. In this post, we will provide an overview of the mechanics of Chapter 7.

Kentucky music festival completes bankruptcy process

Bankruptcy can strike any kind of business operation. While most people think of bankruptcy as a remedy for failed manufacturers or sellers of manufactured goods, the recent business bankruptcy of a Kentucky music festival that never opened its doors illustrates how ventures featuring popular performers and good food can fail.

Understanding the "means test" under Chapter 7

Kentuckians who file petitions under Chapter 7 of the United States Bankruptcy Code usually expect to have all of their debts discharged by the bankruptcy court at the close of the proceedings. However, persons who look to Chapter 7 to eliminate their debt do not always understand that they may be required to meet a threshold that requires them to submit their monthly income and expenses to the court for review before they are eligible for a Chapter 7 discharge. This test is commonly called the "means test."

What happens in a Chapter 7 bankruptcy?

Kentuckians who are contemplating filing a petition for bankruptcy have two choices: a Chapter 7 dissolution and a Chapter 13 reorganization. The consequences of this choice depend upon a number of factors in each person's financial situation. This post will summarize the potential outcomes of a Chapter 7 filing.

How a Chapter 13 bankruptcy differs from a Chapter 7 bankruptcy

Most Kentuckians who are contemplating filing a petition for personal bankruptcy may not understand the different kinds of bankruptcy proceedings or which kind of proceeding may better serve their needs. The United States Bankruptcy Code provides two basic kinds of bankruptcy for individuals, usually referred to as Chapter 7 and Chapter 13. Both plans have the important common features of allowing individuals to eliminate debt and stop creditor harassment, but each plan has distinctive features that require some knowledge of the plans before making a choice.

Radioactive dumping penalties lead to bankruptcy filings

A Chapter 7 bankruptcy can have many purposes, including the avoidance or reduction of administrative fines and penalties. A recent filing by two companies and their owner based in West Liberty demonstrates how a Chapter 7 filing can be used to avoid paying significant fines rather than merely eliminate operating debt.

Not all debts are dischargeable in a Chapter 7 bankruptcy

Bankruptcy can help many people in Kentucky who are in financial difficulty. A personal bankruptcy proceeding can result in the discharge of the debtor's obligation to pay many of his or her debts. However, persons who are considering bankruptcy may not realize that they may have debts that cannot be cancelled, or discharged, in a Chapter 7 bankruptcy liquidation.

Credit card debt nationwide sees pre-Great Recession levels

Many people in Louisville who racked up credit card debt due to holiday spending at the end of 2016 are now well underway into their New Year's resolution of eliminating debt. But, as shown in one recent report, they are not alone in carrying outstanding credit card debt.

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