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December 2014 Archives

The IRS and Chapter 13 bankruptcy

Debtors in Kentucky may be interested in learning more about Chapter 13 bankruptcy and how the process interacts with the IRS. This type of bankruptcy is reserved for debtors who are considered sole proprietors, self-employed or wage earners. Applicants who qualify for Chapter 13 bankruptcy have reliable income, meet the requirements established under bankruptcy codes and have filed all the appropriate tax return documents for the four years preceding the application.

Unsecured creditors and property liens

Although credit card companies are normally unsecured creditors, they may still be able to go through a process in order to convert their interest into a secured one in Kentucky. In the event a debtor is sued civilly and a judgment is issued, the creditor may then try to secure a lien against the real property owned by the debtor.

Getting rid of a second mortgage through bankruptcy

Some people in Kentucky that are considering bankruptcy are wishing to prevent foreclosure of their homes. Many of them may have second mortgages on the property. Like the primary mortgage holder, the second mortgage lender can initiate foreclosure proceedings if the homeowner defaults on his or her payments.

Kentucky and the national credit card debt

Kentucky residents partake in the national trend towards increasing credit card debt. The combined households of America currently owe as much as $11.71 trillion. This number has increased about 3 percent since 2013. This means that the average household that carries debt has approximately $15,608 that they are liable for.

The Chapter 7 bankruptcy process

Kentucky residents who are considering filing for Chapter 7 bankruptcy may have questions about what it involves. Chapter 7 is also known as a liquidation. Unlike in Chapter 13, which involves a repayment plan, certain property and assets of the debtor are sold by the trustee in order to pay a portion of the owed debt. Although debtors may expect to lose some property, there are many categories of property that are exempted under both federal and state law so debtors will not lose everything.

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