Our Legal Blog

BANKRUPTCY NEWS: Innovative Mattress Solutions, LLC and its subsidiaries, doing business as “Sleep Outfitters” filed for Chapter 11 bankruptcy protection on the morning of January 11, 2019 in the U.S. Bankruptcy Court for the Eastern District of Kentucky, Lexington Division, being Lead Case No. 19-50042. Sleep Outfitters reports that it has 142 retail locations staffed by over 400 employees. Gross sales were $146 million in 2015. The Bankruptcy Court will hold a hearing on First Day Motions at 9 a.m. on January 15, 2019 in the Lexington courtroom. Sleep Outfitters proposes to immediately borrow $6 […]

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 […]

Federal law requires employers to withhold income, Social Security, and Medicare taxes from employee wages. When a company experiences financial distress, payments for these payroll or “trust fund” taxes may be temporarily postponed or deliberately ignored. It is important for any business owner to understand that willful failure to pay employee taxes can bring a costly lawsuit from the IRS. A recent Sixth Circuit Court of Appeals decision along these lines is noteworthy.  Issued in July, 2018, the judge’s decision stresses the importance of ensuring that your company’s taxes remain current and confirms that a […]

With the average American holding more than $6,300 in credit card debt, it’s no surprise that many American consumers go overboard when it comes to accumulating balances on their credit cards. If you have a substantial amount of credit card debt and are considering the option of filing bankruptcy, you may be wondering what will happen to your current credit cards (and your ability to open new card accounts in the future) as a result. What to Expect From Your Current Cards Unfortunately, when you file for bankruptcy and a repayment plan is worked out with […]

Many people will do anything to avoid filing for bankruptcy. The word “bankruptcy” comes with a stigma, and, of course, there are repercussions for your credit score. But, if all signs are indicating you will be unable to keep up with your debts, waiting to file for bankruptcy can be a bad decision. Filing for Chapter 7 or Chapter 13 bankruptcy protection immediately halts litigation action against you, stops foreclosure proceedings and staves off garnishment of your wages. In some cases, you can protect assets you would otherwise lose, such as a car or house, […]

If you are making minimum monthly payments on a mountain of debt, it may seem impossible to imagine a debt-free future. A debt reduction plan such as “debt avalanche” or “debt snowball” can help you pay down and eventually get rid of your financial obligations. These methods involve paying off creditors one at a time, a strategy that has been proven effective. According to Forbes, people who focus on paying down a single debt are more likely to remain motivated for long-term debt elimination. Debt Avalanche or Debt Snowball — Which Plan is Right for […]