You may believe that a bankruptcy option is accessible to everyone and that the easiest part of the process is filing. However, you would, unfortunately, be wrong to assume so. Read on to discover who is restricted from a bankruptcy filing and how a seasoned Louisville, Kentucky consumer bankruptcy lawyer at Schwartz Bankruptcy Law Center can do every in their power to help you qualify.

Is anyone restricted from bankruptcy filing in the state of Kentucky?

Before all else, you must take into account your history with bankruptcy filings. If you have no history (i.e., this is your first time filing), then you likely have nothing to worry about. However, if you have filed in the past, then you may have to wait a certain amount of time before you can file once more. This timeframe is dependent on which type of bankruptcy you previously filed and which type of bankruptcy you intend to file for next. Examples are as follows:

  • You first filed for Chapter 7 bankruptcy and now you are filing for Chapter 7 again: you must wait eight years.
  • You first file for Chapter 7 bankruptcy and now you are filing for Chapter 13: you must wait four years.
  • You first filed for Chapter 13 bankruptcy and now you are filing for Chapter 7: you must wait six years or less.
  • You first filed for Chapter 13 bankruptcy and now you are filing for Chapter 13 again: you must wait two years.

What are other restrictions for a bankruptcy filing?

First of all, if you wish to claim exemptions in your bankruptcy, you will have to have lived in the state of Kentucky for at least two years before filing. Otherwise, you will have to follow the exemption laws of the state in which you previously resided.

If you overcome this restriction, then you must consider your family’s gross income. That is, if you are part of a household size of two, your gross income must be less than the median income standard in the state of Kentucky. Numerically, this must be less than $5,149.17 per month or less than $61,790.00 per year. Evidently, this standard varies depending on your household size.

If your household earns more than the state of Kentucky’s median income standard, then you may not be able to seek relief through Chapter 7 bankruptcy. This is when you may turn to Chapter 13 bankruptcy. However, with greater perks comes greater payments. Meaning, you must consider your ability to keep up with Chapter 13’s repayment program, which includes using your disposable income to make monthly payments for your non-dischargeable debt and your non-exempt property.

We understand just how difficult it may be to find a path that you are qualified to take. This is why we recommend that you seek legal advice from a competent Jefferson County, Kentucky bankruptcy lawyer. We will know exactly what you should do, so pick up the phone and give us a call today.