chapter 7 bankruptcy in kentucky
TRANSCRIPT
CHAPTER 7 BANKRUPTCYin Kentucky
Chapter 7
Chapter 7 results in most debt being discharged, or eliminated,
without the need to repay it
For this reason debtors who qualify typically choose to use chapter 7
THE MEAN TEST
The “Means Test” was introduced by the Bankruptcy Abuse Prevention
and Consumer Protection Act of 2005 (BAPCPA) to prevent abuse of
chapter 7
The means test compares your income to that of other similarly
situated households in your geographic area to determine if
your income falls at, or below, the median
Debtor’s whose income is below the median may file a chapter 7
bankruptcy. Other debtors may qualify under other provisions.
LIQUIDATION AND EXEMPTIONS
Chapter 7 is commonly referred to as a “liquidation” bankruptcy
because the Trustee has the power to seize and sell non-exempt assets,
most debtors who file a chapter 7 bankruptcy are able to protect their assets by using the federal or state
exemptions
In Kentucky, a debtor may choose to use either the federal or state
exemptions, but CANNOT combine them
DISCHARGE AND LIFE AFTER A CHAPTER 7
BANKRUPTCY
A typical chapter 7 bankruptcy only takes about four to six months to
complete
When the bankruptcy is discharged, most debts are
eliminated, meaning the debtor is no longer responsible for paying
them
Most debtors are able to obtain financing for a vehicle or other purchases within the
first year after a chapter 7 discharge
Financing for a mortgage can take longer – typically two years for an
FHA loan and up to four years for a conventional loan
Learn More About Chapter 7 Bankruptcy in Kentucky
Click to visit:
www.mmslawonline.com
Content provided by: Best Legal Practices