IS THERE MORE THAN ONE TYPE OF BANKRUPTCY?
Yes, for the individual or consumer, there are two basic types of bankruptcy, Chapter 7, liquidation, and Chapter 13, debt repayment, also known as reorganization. Farmers and fishermen can file a Chapter 12. There are other types of bankruptcies for businesses, municipalities’ etcetera but this web site only addresses Chapter 7 and Chapter 13 bankruptcies. Return to top of page.
CHAPTER 7 BANKRUPTCY -A Chapter 7 Bankruptcy involves a liquidation of all non exempt assets. Think of a Chapter 7 Bankruptcy as a financial fresh start. Most or all of your debts can be discharged. An example of a typical Chapter 7 Bankruptcy filer would be a person who lost their job and was off work for number of months. They have a new job that does not pay as much as their old job. For this reason, they cannot pay all of their bills. Another example would be someone who was just making ends meet and then was hospitalized with a major illness or injury and now has a huge list of medical bills that they cannot pay. These people want to pay their debts but simply do not make enough money. While there are some debts that cannot be bankrupted, such as back child support payments, most people find that a Chapter 7 eliminates all, or substantially reduces their debts. Under the current law, not everyone qualifies to file a Chapter 7. First, you have to pass a Means Test. If you do not qualify for a Chapter 7, the next option would be to consider filing a Chapter 13 petition.
CHAPTER 13 BANKRUPTCY - A Chapter 13 Bankruptcy involves the reorganization of your debt and is a court supervised program which allows you to create a repayment plan for your debts. In a Chapter 13, your debts are consolidated and you make payments to a trustee who creates a fund from which the trustee makes payments to your creditors on your behalf. The total percentage of the debt that you pay back depends on a number of factors, including, your income, your monthly living expenses and how much property you own.
We are a debt relief agency.
We help people file for bankruptcy relief under the Bankruptcy Code.
Kentucky does not certify specialties of legal practice.
If you have additional questions, not answered here, you may want to go to our Bankruptcy FAQ page.
You may be unfamiliar with many of the terms used in connection with bankruptcy cases, to see definitions of bankruptcy terms, go to our Glossary page.
Patricia A. Abell |Attorney at Law | The Normandy Building | 101 North Seventh St. | Louisville, KY 40202 | Phone: (502)561-3455 | pabell@patriciaabell.com
Copyright © 2012 by Patricia A. Abell, Attorney at Law. All Rights Reserved.
Client Service Area
Patricia Abell’s Law office is located in Louisville, Jefferson County, Kentucky. My office serves bankruptcy clients living in the Kentucky counties of Breckinridge, Bullitt, Hardin, Jefferson, Larue, Marion, Meade, Nelson, Oldham, Spencer and Washington, This includes the cities of Cloverport, Hardinsburg, Irvington, Fox Chase, Hebron Estates, Hillview, Lebanon Junction, Mount Washington, Pioneer Village, Shepherdsville, Elizabethtown, Radcliff, Sonora, Upton, Vine Grove, West Point, Anchorage, Audubon Park, Buechel, Goose Creek, Hurstbourne, Jeffersontown, Okolona, Prospect, Hodgenville, Bradfordsville, Lebanon, Loretto, Raywick , Brandenburg, Ekron, Muldraugh, Bardstown, Bloomfield, Fairfield , New Haven, Crestwood, Goshen, Lagrange, Pewee Valley, Taylorsville, Elk Creek, Mount Eden, Springfield.
