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Louisville Bankruptcy Legal Blog

Chapter 13 bankruptcy offers advantages

In many cases, a Louisville family may file a Chapter 13 bankruptcy, which involves repaying creditors all or part of the family's debts over the course of 3 to 5 years, simply because they make too much income to qualify for a personal bankruptcy under Chapter 7. In other cases, people might sense a moral obligation to repay their debts as best as possible, even though they see the financial advantages to filing a Chapter 13.

However, it is important that those who are looking at a Chapter 13 as an option view it not as the backup choice to a Chapter 7 personal bankruptcy or as some sort of punishment for making too much money. Indeed, many Kentuckians are better off financially because of a Chapter 13, and in some cases, the Chapter 13 may help them to keep property to which they want to hold on.

Should I agree to reaffirm a debt?

In a Chapter 7 bankruptcy, it is fairly common for a family to own a house or a car or even some other item which is "secured," that is, the property serves as collateral in the even the family cannot pay the mortgage or the car loan. In other words, the debtor has the right to take the property; while the bankruptcy may delay this process, it does not prevent the bank from taking back the house or car.

In order to prevent this, many Louisville residents will consider reaffirming their debt to the bank which has the rights to the collateral, especially if they have managed to keep up with the house or the car payments.

More retailers could be headed for bankruptcy in 2018

According to at least one source, retailers are in for another tough year in 2018 which could be substantially worse than the retail sector's poor showing in 2017.

While last year saw the closure of around 9,000 stores, estimate for 2018 suggest there will be 12,000 closures of retail stores over the upcoming months, a 25 percent increase. Some nationwide retail stores, over a couple of dozen, may also wind up in Chapter 11 bankruptcy this year.

The wildcard exemption may help you in a Chapter 7 filing

When you think about filing for bankruptcy, it may seem at first like an overwhelming task. One of your major concerns is sure to be about assets: What will you be able to save?

The thought of losing your home, your car or other possessions is frightening, but remember that you will be able to take advantage of exemptions. One of these is the federal wildcard exemption.

We can help you choose the best option to handle business debt

As previous posts on this bog have discussed, there are many different ways a Louisville business that finds itself in financial trouble can choose to handle mounting debt in the face of sluggish revenue.

For instance, under some circumstances, a business owner can lump his or her business debts in to a personal Chapter 13 bankruptcy, which can give the owner valuable time to get the business reorganized and turned around while he or she slowly pays off business debt.

Chapter 13 as a form of business bankruptcy

Louisville, Kentucky, residents routinely use Chapter 13 bankruptcy in certain situations where they want to resolve personal debts such as a mortgage or a credit card.

However, depending on how they organized their business, small business owners can also use a Chapter 13 bankruptcy to handle business-related debts by making lower payments on them, thereby giving them the opportunity to turn around their business around financially.

How a Chapter 13 bankruptcy can protect your home

While many Louisville, Kentucky, residents may be under the impression that any type of bankruptcy will stop a foreclosure, such an impression is only true to a certain extent.

It is true that a bankruptcy as a rule imposes an automatic stay on creditors, including banks which are in the process of foreclosing on a debtor's home. This means that a bankruptcy can, at a minimum, delay a foreclosure action.

Financially distressed toy giant allowed go give execs bonuses

A bankruptcy judge approved the plan of the nationwide retail toy seller, Toys R Us, to pay its top leadership bonuses of up to $14 million, provided they meet certain sales goals, particularly over the Christmas season.

After the United State Bankruptcy Trustee objected to the original bonus plan, which called for $16 million in bonuses, the company reduced the total amount of bonuses that would be paid. The company also set more definite standards under which the executives would earn all or part of the bonuses.

In the language of bankruptcy, what is a 341 meeting?

If you are thinking about filing for bankruptcy, you undoubtedly have many questions. You may have heard of certain terms and need a better understanding of what they mean.

One of the terms related to the bankruptcy process is a “341 meeting.” What is this, and how would it involve you as a filer?

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