If you are drowning in debt and are struggling or unable to make your monthly credit card or loan payments, you might be thinking about filing bankruptcy.
Our Covington bankruptcy lawyers are well-versed on Kentucky bankruptcy laws and the bankruptcy filing process. Contact our legal team in Covington to schedule a free, no-obligation consultation to find out how we can help you with your bankruptcy and get you on the road to financial recovery.
REASONS TO FILE BANKRUPTCY
Many people across the country have found themselves in situations where they have more debt than they can handle. There are many reasons why this happens, including:
- Suffering an injury with high treatment costs
- Taking on too many loans or lines of credit for your income
- Losing your job
- Spending more money than you make
In these situations, people often have one or many types of debt they cannot pay back, some of which include:
- Medical bills
- Student loans
- Utility bills
- Attorney’s fees
- Divorce costs
- Car loans
- Credit card debt
- Small business debt
Filing bankruptcy can allow people to negotiate affordable monthly payments on these types of debt.
Filing bankruptcy can also prevent personal property, such as homes or cars, from being repossessed by lenders or creditors. In some cases, bankruptcy allows people to recover homes, cars or other personal property that were already repossessed.
However, you need an experienced Covington lawyer to guide you through your bankruptcy filing to make sure you have the best opportunity to repay your debt and rebuild your credit.
The lawyers at O’Connor, Acciani & Levy will work tirelessly to help make sure your bankruptcy filing has the outcome that is in your best interests.
WHAT TYPE OF BANKRUPTCY IS BEST FOR YOUR SITUATION?
If you are filing bankruptcy as an individual, these are the two most common options:
- Chapter 7 – This is one of the simplest, most common bankruptcy filings. It involves liquidating assets to pay off creditors – some assets may be exempt from liquidation. However, you cannot file Chapter 7 unless you pass a means test and meet specific criteria defined by the state of Kentucky. Chapter 7 is available to businesses as well as individuals.
- Chapter 13 – This type of bankruptcy is for people with extreme debt who have regular income. Chapter 13 is also known as debt reorganization, as it allows you to combine all of your debts into one monthly bill that is significantly lower than the original amount you owe.
There are other types of bankruptcy filings for businesses and people who are ineligible for Chapter 7 or Chapter 13 bankruptcies, such as:
- Chapter 9 – This is also known as municipal bankruptcy because it is used to resolved municipal debts.
- Chapter 11 – While this type of bankruptcy is sometimes used by individuals who have considerable assets, it is most often used by corporations. This type of bankruptcy filing allows corporations to continue operating while they reorganize debt.
- Chapter 12 – This is for fishermen and family farmers.
- Chapter 15 – This can be used for foreign debtors.
Our Covington lawyers will carefully review your situation to determine what type of bankruptcy you should file. Our goal is to find the best solution to help you pay off your debts and get back on your feet financially.
CONTACT OUR COVINGTON BANKRUPTCY LAWYERS TODAY
If you are deep in debt and you do not think there is any way out, bankruptcy might be your only option.
You might be afraid to even consider bankruptcy because you believe that you will never recover from it, but that is not necessarily true.
If you allow a skilled Covington bankruptcy lawyer to guide you through the process, you will have a good chance of getting affordable monthly payments on your debts and rebuilding your credit.
Our dedicated attorneys have decades of experience guiding clients through various forms of bankruptcy. We will bring all of our knowledge and experience to help with your claim to ensure it has the most positive outcome possible.
Your initial claim is absolutely free and comes with no obligation to pursue your claim further.