Chapter 7 Bankruptcy

Lexington Chapter 7 Bankruptcy Attorneys

When you call our Lexington offices of Bunch & Brock, Attorneys at Law, to say, "I'd like to know if I should file for Chapter 7?" You will know you have come to the right place. After thirty-plus years in the bankruptcy law business, with a reputation as far-ranging as our central Kentucky territory, we know Chapter 7 maneuvers like the backs of our hands.

Liquidation Bankruptcy

Chapter 7 is known as a liquidation bankruptcy. It can be filed by individuals, as a consumer bankruptcy, or by businesses. A Chapter 7 personal bankruptcy typically takes three to six months to complete.

In a liquidation bankruptcy, a portion of your property may be sold to pay down your debt, at which point most or all of your unsecured debts will be erased. Unsecured debts are those for which collateral hasn't been pledged.

You may be allowed to retain possession of any property classified as "exempt" under the bankruptcy laws such as: your clothes, car, and household furnishings, for example. If you don't own much, chances are that all of your property is exempt, and you have what is known as a "no asset" case.

The Good News

If money is owed on a secured debt, as with a car loan, where the car is pledged as a guarantee of payment, you have a choice of permitting the creditor to repossess the property. Or you can continue your payments under the contract, if the lender agrees. Or you may pay the creditor a lump sum amount equal to the property's current replacement value.

Some types of secured debts can be eliminated in Chapter 7 bankruptcy.

The Bad News

Chapter 7 isn't for everyone. By that, we mean that not everyone can file for it. For example: if your disposable income is sufficient, after subtracting certain expenses and payments for certain debts (child support, debts that secure property) to fund a Chapter 13 repayment plan, you won't be allowed to use Chapter 7.

Bankruptcy doesn't work to discharge some kinds of debts. It can eliminate credit card debt, medical bills, and unsecured loans. But there are others, like child support, spousal support obligations, and most tax debts and student loans that cannot be wiped out in bankruptcy.

When you're ready for the news about Chapter 7 … be it good, bad, or ugly … you'll get it promptly, honestly, and professionally from the skilled bankruptcy lawyers at Bunch & Brock, Attorneys at Law, in Lexington.

Call Us Today

Call us today at 859-254-5522 or fax, or e-mail us, to schedule your initial consultation. We want to hear about your bankruptcy, estate planning, probate, or small business law problem.