Chapter 7 Bankruptcy Lawyers in Louisville, KY

Chapter 7 bankruptcies can benefit individuals with a household income below the Kentucky median. There are instances, however, where individuals with an income that is above the median can file for a Chapter 7 because their month-to-month expenses are exceptionally high. 

To determine eligibility, the state uses a means test, or a survey of an individual’s financial situation. This test considers a potential filer’s income and expenses in determining whether a person is eligible to file for Chapter 7 bankruptcy. If they are determined ineligible, they can still file a Chapter 13 bankruptcy. 

It is important to note that many filers are concerned about losing their property, however, 11 U.S.C. § 522 provide generous exemptions that allow most filers to retain their assets. 

Additionally, the code allows for other fresh start opportunities, such as:

• Freedom from creditor harassment
• Recovery of garnished wages or money paid to creditors, under certain circumstances
• Release from expensive payments on older, unreliable vehicles 

How to File for Chapter 7 Bankruptcy

Prior to officially filing for Chapter 7 bankruptcy, you need to collect documentation that shows your financial situation, including: 

• Income statements, such as paystubs
• Receipts for significant sales or purchases
• Bills showing your expenses
• Documents proving debts and other assets
• Tax returns 

After collecting these necessary documents, your attorney can then file a formal petition with the Kentucky district bankruptcy court that describes your financial situation. Once submitted, the court will assign a trustee, who is responsible for liquidating any non-exempt assets. 

You will need to complete two courses before and after the legal process. The state requires filers to take a credit counseling course no more than six months before filing, as well as a money management course after.

How Hodge & Smither Attorneys Can Help You

One of the best things you can do to ensure your filing process goes smoothly is retain the help of our trusted Louisville Chapter 7 bankruptcy lawyers. 

Benefits of working with our attorneys include:

• We can help you collect the right information to accurately illustrate your financial situation to the court
• We can develop a strategy to maximize your exemptions 
• During the filing process we can draft your bankruptcy petition and advocate for you inside and outside of court
• Our attorneys can work with local dealers to get you into a new, reliable vehicle with manageable payments
• We can help you recover payments made to your creditors or garnished wages within 90 days of filing.

At Hodge & Smither, we know that a Chapter 7 bankruptcy can be a relief, but the legal process may not be easy to navigate on your own. Choose Hodge & Smither to help you with your bankruptcy. We are a firm that takes pride in advocating for our clients and providing them with crucial support in moments when they need it most.