Louisville Bankruptcy Attorney
Experienced Bankruptcy Lawyers in Louisville
Few things are more personal in life than your finances. If you’re losing sleep at night because you’re stressing over your bills, just know that there are many debt relief options that we can tailor to your individual needs. For almost twenty years, bankruptcy attorneys at O’Bryan Law Offices have provided debt relief to thousands of people a year through the bankruptcy process, giving them an immediate fresh start to rebuild their financial life. If you’re in desperate need of debt relief, contact a Louisville bankruptcy attorney at our law firm today at 502-339-0222 for a free consultation.
Louisville Consumer Protection and Bankruptcy Firm
Bankruptcy lawyers at our debt relief agency exclusively handle both personal and consumer bankruptcy cases across the Kentuckiana area. Our previous clients know our law office as an effective, affordable, and reliable advocate for prospective clients of all walks of life.
Our law firm combines a thorough understanding of bankruptcy law and strategy with attentive, compassionate, and outstanding service. Because of that, each client leaves feeling that their bankruptcy lawyer has resolved their legal issues.
Considering Bankruptcy?
What is Bankruptcy?
Bankruptcy is one of many debt relief options out there that helps individuals and businesses get a fresh start by completely eliminating or repaying debt. A bankruptcy lawyer can help you achieve debt relief as smoothly and as quickly as possible. If you’re looking for bankruptcy alternatives, bankruptcy attorneys at O’Bryan Law Offices also offer debt counseling.
What are the Different Types of Bankruptcy?
There are many different chapters of bankruptcy that a person or business can file for depending on their specific needs. They include: Chapter 7 bankruptcy, Chapter 11 bankruptcy, Chapter 12 bankruptcy, and Chapter 13 bankruptcy. The “chapter” names come from the chapters where they appear in the federal bankruptcy code. Basically, Chapter 7 and Chapter 13 are the most common types of bankruptcy that people and businesses file. But it’s important to meet with a Louisville bankruptcy attorney to see which one is best for you.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is generally referred to as “liquidation bankruptcy.” This chapter in the bankruptcy code basically works by selling your personal assets in order to pay off credit card debt, medical debt, personal debt, and more. The beauty of Chapter 7 is that because you’re selling many of your assets, you won’t have to pay into a monthly repayment plan.
Chapter 13 Bankruptcy
If you have a stable job and income and you’re looking to keep all of your assets, then Chapter 13 bankruptcy is a better option for you. Chapter 13 is often referred to as “reorganization bankruptcy.” Basically, you will work out debt repayment plans with your Louisville bankruptcy lawyer. This plan will likely pay off your debts within three to five years, as long as you stick to it. Your minimum monthly payments will generally depend on:
- Your annual income
- How much debt you owe
- Nonexempt property value
Involuntary Bankruptcy
Not only are bankruptcy cases beneficial to the person enduring overwhelming debt, they’re also beneficial to creditors so that they can get paid. Because of this, creditors will very rarely force debtors into an involuntary bankruptcy. On the rare occasion that this happens, creditors will generally do this to bankrupt businesses, not individuals. If you’re a business owner being forced into an involuntary bankruptcy, bankruptcy attorneys at O’Bryan Law Offices want to remind you of your legal rights during a free consultation.
How Involuntary Bankruptcy Works
A creditor can only file an involuntary bankruptcy under Chapter 7 bankruptcy or Chapter 11 bankruptcy. They can’t file under Chapter 11 or Chapter 13 bankruptcy. The creditor must say why they’re initiating the bankruptcy filing. It’s generally due to one of these reasons:
- The bankrupt business isn’t paying off their debts.
- An agent seized custody of the debtor's property within the last 120 days to enforce a lien.
The bankrupt business has the opportunity to respond to the involuntary bankruptcy. If they don’t respond, the court will move the case onward and require the business’s involvement anyway. But if the business does respond, they will work with the court to set a hearing. Additionally, the court will decide if they should move forward with the case.
Involuntary Bankruptcy Limitations
In order to file an involuntary bankruptcy case, at least three creditors with a combined total of at least $15,775 in debt must join the motion. But it’s still possible for only one creditor to file an involuntary bankruptcy. They can only file this kind of case if they can prove that the debtor owes at least $15,775. Also, the debtor must have less than 12 unsecured creditors. A creditor can’t file an involuntary bankruptcy against these organizations and people:
- Banks
- Insurance companies
- Non-profit organizations
- Credit unions
- Farmers or family farmers
How Long Does Bankruptcy Stay on Your Credit Report?
Bankruptcy filings are generally deleted from your credit report 7 to 10 years after the filing date. This depends on what chapter bankruptcy you filed. Talking to Louisville bankruptcy attorneys will help you figure out exactly how long your type of bankruptcy will stay on your credit report.
What Bankruptcy Can and Can’t Do
The bottom line for every chapter of bankruptcy is that it will likely give you a fresh start through debt relief over the course of a few years. But before you file with bankruptcy lawyers in Louisville, it’s certainly important to keep in mind what bankruptcy can and can’t do.
What Bankruptcy Can Do
If your experienced bankruptcy attorney suggests that you file for Chapter 7 or Chapter 13, you can generally expect the benefits listed below.
Stop Creditor Harassment
Once a bankruptcy filing is in the works, you can expect most harassing phone calls, emails, wage garnishments, and lawsuits from your creditors to stop. This is because a court will issue an automatic stay, which will prevent creditors from pursuing collection activities. However, this automatic stay may not prevent creditors from collecting support payments. Additionally, any criminal cases you may be facing will continue.
Temporarily Stop Foreclosures, Repossessions, or Evictions
An automatic stay will also temporarily stop foreclosures, repossessions, and evictions. However, this is only the case if these actions are still pending. Once they’re complete, a bankruptcy won’t prevent them from happening.
Get Rid of Most Unsecured Debts
The best part of a bankruptcy filing is that it will eventually get rid of most of your unsecured debts. This includes credit card debt, medical debt, overdue utility payments, personal loans, and more. In fact, one of the only debts that bankruptcy can’t get rid of is student loans.
Bankruptcy can also get rid of secured debts, but only if you give back the item you previously bought. For example, large household appliances, jewelry, furniture, and computers and other electronics are generally considered secured debts.
What Bankruptcy Can’t Do
Unfortunately, filing bankruptcy won’t solve all your problems. It’s important to keep that in mind before you start the process with a bankruptcy law firm.
Stop a Secured Creditor from Repossessing or Foreclosing on Property You Can’t Afford
While bankruptcy will eventually get rid of the majority of your debt, it won’t get rid of liens. Basically, a lien enables a lender to seize property, auction it, and use the money for a loan obligation. Until the obligation is paid, the lien remains on the property. But if you have a secured debt, bankruptcy may be able to discharge your debt obligation. It will not, however, remove the lien from the property; the creditor will still be able to obtain the collateral.
Stop Child Support and Alimony
Child support and alimony payments will continue as normal throughout the bankruptcy process.
Get Rid of Student Loans
Bankruptcy can’t get rid of student loans unless you prove that paying them is causing you “undue hardship.” Basically, you would have to prove that there’s absolutely no way that you can pay off your student loans right now or in the future. However, very few people can successfully prove this.
Get Rid of Other Nondischargeable Debts
Unfortunately, you can’t get rid of these nondischargeable debts with Chapter 7 or Chapter 13:
- The debts that you forgot to include in your bankruptcy paperwork.
- Debts related to personal injury or death caused by intoxicated driving.
- Fines that you received as punishment. For example: a traffic ticket.
Top Louisville Debt Relief Agency
You don’t need to suffer through the stress and anxiety of increasing debt issues. Julie O’Bryan and her team of bankruptcy attorneys at O’Bryan Law Offices have over 40 years of combined experience in representing clients for their legal needs. Our law office can certainly assist you with specific problems such as credit counseling, mortgage foreclosure, tax obligations or small business restructuring. Our law firm can even help with other legal issues such as personal injury, uncontested divorce, and estate planning. Call us today at 502-339-0222 for a free consultation.
Bankruptcy
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