Simply put, income is the primary difference between these two types of bankruptcy. A Kentucky resident has to be below a certain income level in order to qualify for Chapter 7 (commonly referred to as a liquidation bankruptcy). If an individual's income is higher than that demarcation point, a Chapter 13 (commonly referred to as a reorganization) will need to be filed.
Most Kentucky residents are under the impression that student loans can never be discharged in a bankruptcy, but that it not entirely true. Under certain circumstances, some or all of an individual's student loans can be discharged in a Chapter 7 bankruptcy. However, the process is complex and should not be attempted alone.
Whether large or small, many businesses must make the smart decision to shutter their operations when they are no longer viable. When liabilities outweigh assets and there is not a way to restructure the debt, it is prudent for a company to seek bankruptcy. Kentucky readers may be interested in a recent article written about a craft brewing company in the southeast which filed for Chapter 7 bankruptcy.
When most people imagine the lifestyle of a sports star, they generally picture a comfortable or even luxurious existence. However, recent articles and documentaries that feature talented college and professional athletes tell another story. Many leave their venerated standing in the sports world and discover that the money and notoriety they obtained dwindles quickly after they retire or move on from playing sports. A recent article describes the story behind former University of Kentucky basketball star Richie Farmer's recent decision to seek Chapter 7 bankruptcy.
When you are entering into a bankruptcy the first thing that has to be considered is whether you are a Chapter 7 or Chapter 13 bankruptcy candidate. You may not be aware of these various types of debt relief. It is highly recommended that you utilize the services of a bankruptcy attorney to not only help you choose the right form that is best for you, but to take you to the inside entire process.
Being in debt is certainly stressful and most individuals want to be able to meet their financial obligations, but for a number of reasons they may not be able to do so. Before long they are beginning to have to deal with creditor harassment. This can take place on many different levels but in most cases there is a great to deal of stress that comes with it.
Bankruptcy can help with some tax debt but not all of it. For those that are going into a Chapter 7 bankruptcy, the tax debt that can be discharged is only that which is income based and applies to federal or state taxes or gross receipt taxes.
Many times when an individual files for bankruptcy it ends up that they qualify for a Chapter 13 bankruptcy. This is also a good form of debt relief. Rather than having all or most of the debts discharged, it allows for a debt repayment plan. It entails comprising a plan for paying the debts owed and the payments are monitored by the bankruptcy trustee.