Our Legal Blog

If you are considering filing bankruptcy in Kentucky, this is going to be a difficult and confusing time. Sometimes things happen in our lives that we can’t help. A sudden layoff, a business mishap, or an unexpected medical crisis can always threaten a person’s financial stability. Through no fault of your own, you could be facing financial troubles. This is probably the first time in your life you’ve ever been thinking about filing bankruptcy. If you’re considering filing bankruptcy, it’s important for you to know the right way to go about this process. Let’s get […]

If you fall behind on loan payments for a car, truck, or other vehicle, the creditor has a legal right to repossess this property. For people struggling with finances due to a temporary set-back, losing transportation this way can be devastating. It is certainly difficult to earn necessary wages when you lack reliable transport to get to and from work. If you understand repossession laws, you can take steps to prevent seizure of your vehicle or get your automobile back as soon as possible. What are the repossession laws in KY? Below you will find […]

Financial support for children is of primary importance, and Kentucky gives child support obligations priority in any bankruptcy proceeding. Filing for Chapter 13 or Chapter 7 personal bankruptcy will not discharge child support arrearages or put a stop to a payee’s obligation to continue monthly payments. It is very important for child support, as well as alimony payments, to continue throughout bankruptcy proceedings. If court-ordered support stops, it can lead to garnished wages and other consequences, including suspension of the driver’s license or even incarceration. Note that if a Kentucky bankruptcy filer lacks resources to […]

Statistics show that many Americans today are in potentially serious financial trouble. A recent Pew Charitable Trust survey found that 55% of households report spending as much or more than they make each year. And, according to a November, 2018, report  from the New York Fed Center for Microeconomic Data, household debt rose 1.6% in the third quarter of 2018 — to a staggering $13.51 trillion. Fighting mounting debt with inadequate income is a losing battle, and those who try will usually reach a point of no return. Penalties from missed payments and high interest […]

The “Sleep Outfitters” retail chain has petitioned Kentucky courts for Chapter 11 bankruptcy protection. On January 11, 2019, Sleep Outfitters, a subsidiary of Innovative Mattress Solutions, LLC,   filed for bankruptcy in  the U.S. Bankruptcy Court for the Eastern District of Kentucky, Lexington Division. Similar, large retail bankruptcy filings have become increasingly commonplace in recent years. There were 16 significant retail filings in 2018 and, as of early February, six more in 2019. Sleep Outfitters’ Bankruptcy Case In this case, Sleep Outfitters sought to borrow funding in order to continue business operations as the company looks […]

Once you have achieved a Chapter 7 bankruptcy discharge, it is time to look forward, where you’ll see  opportunity ahead. You will be free of the burden of unmanageable debt — but will also face the challenge of a lower credit score. If buying a house after Chapter 7 bankruptcy is your dream, this is a potentially achievable goal.  Many people are surprised to learn they may qualify for a post-bankruptcy mortgage much sooner than expected. Credit Issues After Chapter 7 A Chapter 7 bankruptcy will stay on your credit report for 10 years, with […]

If you are considering filing for Chapter 7 bankruptcy, you should know more about property exemptions that may apply to your case. Exemptions protect certain types of property from bankruptcy liquidation (sale), which is standard practice in Chapter 7. Non-exempt (unprotected) property can be sold to repay some of your creditors prior to Chapter 7 debt discharge, when the remaining outstanding debt is wiped away. Federal vs. State Exemptions Each state has very different bankruptcy laws, and Kentucky is one of 20 states that allow bankruptcy filers to choose between state and federal exemptions. This […]

If you are thinking about filing for Chapter 7 bankruptcy relief, you probably know this involves “liquidation,” or selling of property, to pay back debts. This is naturally worrying, especially when it comes to the property you need, such as a vehicle you use for transportation. Many pre-bankruptcy clients wonder, “Can I keep my car if I file Chapter 7?” The answer is: there is a good chance you can keep your vehicle post-bankruptcy. If there is a loan against your car, the lender has the right to repossess it for lack of payment. The […]

Filing for bankruptcy can eliminate many types of outstanding debt, including credit card balances and medical bills; but what about loans for big-ticket items like a car, house, or furniture?  A vehicle loan, a home mortgage, and a payment plan for merchandise may also be some of the loans with a bankruptcy that are dischargeable, depending upon your goals and individual circumstances. Unsecured v. Secured Loans There are two types of common loans dealt with in bankruptcy court: secured and unsecured credit. A secured loan is backed by a debtor’s obligation to return property that […]

Bankruptcy “dismissal” sounds a lot like bankruptcy “discharge,” but these two terms have very different meanings. It is important to understand this and to ensure you end up on the right side of the court ruling. A dismissal may mean you lose bankruptcy protection and remain accountable for debts you had expected to be discharged. Bankruptcy Dismissal vs. Discharge After a successful bankruptcy filing, discharge means the terms have been satisfied and all debts are considered settled — this is the outcome you are working toward when you file for bankruptcy. At the point of […]