Fort Campbell Bankruptcy Attorney

If you are feeling weighed down by the excessive amount of debt you have, you may be looking for ways to free yourself from that situation. Deciding whether to file for bankruptcy is difficult. It’s a complicated process, and although there can be great benefits, you aren’t completely sure how it can affect you. If you consult with a Fort Campbell bankruptcy attorney who is familiar with bankruptcy laws and rules, you can have all your questions answered.

At the law office of Michael J. Thompson, Attorney at Law, we are fully aware of the concerns of filing for bankruptcy. It’s a complex matter, but it can also help you regain control of your finances so that you can create a better financial future. Our dedicated bankruptcy lawyers can go over the specifics of your financial situation and give suggestions for how you can proceed to achieve your financial goals. We can make sure you have the knowledge and confidence to take whichever path you choose.

How Can Filing for Bankruptcy Benefit Me?

Filing for bankruptcy can give you a lot of debt relief and more financial control. You can eliminate debt from medical bills, credit card bills, and so much more, but this does not mean that you can get rid of all debt through bankruptcy. There are some debts that bankruptcy cannot make disappear, and you should be aware of the exceptions before making the decision to file for bankruptcy.

In addition to freeing you of debt, bankruptcy can also stop creditors from coming after you when seeking payments for a period of time, known as an automatic stay period. During this time, creditors are not allowed to contact you about your debt, seize your assets for liquidation, evict you, garnish your wages, repossess your property, or do anything else as a way to fulfill your payment. Until the automatic stay ends, when your case is closed, you do not have to deal with creditors.

Chapter 7 vs. Chapter 13 Bankruptcy

When filing for bankruptcy, there are typically two types you can choose from. They are Chapter 7 and Chapter 13. The main difference between the two is that, with Chapter 13, you need to have a consistent income because you will be making payments toward your debt, potentially for three to five years, while Chapter 7 can discharge most of your debt, freeing you from any personal liability. Both options allow for an automatic stay period until the case closes.

Your financial status essentially determines which one you qualify for, based on the means test. Generally, individuals whose household income is below that of the average in their area can likely file for Chapter 7. Others with income that is above the average in their area will have to go through the means test.

The means test takes into account a person’s income as well as their regular expenses to decide if they would be able to make monthly payments to pay off some of their debt. Therefore, even if you make more than the average income, you may still be able to file for Chapter 7 if your circumstances call for it. Otherwise, you will likely have to file for Chapter 13 bankruptcy.

Individuals who don’t qualify for Chapter 7 also have to be careful to make sure they qualify for Chapter 13. This option has a qualification known as a debt ceiling, meaning that there is a maximum amount of debt that a person must have before they qualify for Chapter 13 bankruptcy. A bankruptcy lawyer can give you exact figures.

It may seem like filing for Chapter 7 is the better option if you qualify, but some people may choose to file Chapter 13 if they can. Here are a few reasons why someone might choose Chapter 13 over Chapter 7:

• You can keep nonexempt property that a trustee could otherwise liquidate to pay back creditors under Chapter 7.
• You can keep your home from being foreclosed on and your property from being repossessed. Since Chapter 13 puts you on a monthly payment plan, these debts can eventually be paid off during the automatic stay. The caveat to this is that creditors can also request to have an automatic stay lifted.
• You want to pay off debt that cannot be discharged.

For those who have a choice, it is important to consider all your current finances and your financial future when deciding which chapter you want to file with or if you want to file for bankruptcy at all. While Chapter 7 can discharge your debt in a matter of months, there are certain guidelines you have to follow for Chapter 13 before any debt can be discharged.

Bankruptcy Exemptions

Although Chapter 7 bankruptcy allows for a trustee to liquidate some of your property to pay off some of your debts, in Kentucky, there are some assets that are exempt from this:

• Home Equity: $5,000 of home equity is protected from liquidation.
• Motor Vehicles: Up to $2,500 in equity is protected.
• Personal Property: Up to $6,500 in electronics, livestock, pets, furniture, and related items qualify for exemption.
• Retirement Benefits: Pension plans, IRAs, 401(k)s, and other kinds of retirement accounts are all exempt, along with public benefits and life insurance payouts.
• Wildcard Exemption: Up to $1,000 of normally nonexempt property can be protected.

This list is only for the state of Kentucky. There is also a federal list with some slight differences. Debtors can choose which list they want to use.

Should I Hire a Fort Campbell Bankruptcy Attorney?

It is worthwhile to hire a bankruptcy attorney if you are considering filing for bankruptcy. For one, the process can become extremely complicated with the different rules and guidelines. It might be easier to understand everything when you have someone familiar with the laws to help you. A bankruptcy attorney can:

• Determine which chapter you qualify for and how to qualify for a specific one.
• Figure out the right time to file.
• Help you hold on to significant property.
• Make sure you don’t run into any issues when filing.
• Handle creditors who continue to call and reach out to you.

Trust the Law Office of Michael J. Thompson, Attorney at Law

At the law office of Michael J. Thompson, Attorney at Law, our team of experienced bankruptcy attorneys is dedicated to helping individuals navigate the bankruptcy process with compassion, discretion, and knowledge. We believe that everyone deserves a second chance and a path to financial stability. Contact our office today for a consultation to go over all the possible options for you.