Law Office of Allan E. Dunaway, PLC

June 2013 Archives

Expensive divorce leads to Chapter 7 bankruptcy

Bankruptcy often carries a stigma, with the unstated implication being that someone who files for bankruptcy protection has done so because of his or her profligate spending habits. This does happen, as people find their spending out of control due to overuse of credit cards. But more often, other problems trigger a bankruptcy. Medical problems, especially when if combined to a job loss, can quickly swamp most people's finances. Another significant cause of bankruptcy is divorce.

Bankruptcy on $16,000 a month

Could you get by on $16,000 per month? This is only somewhat lower than the per capita income in Kentucky for 2012, at $22,300. Well, if you are the comedian Sinbad, you can't. You see, he is $10,992,715 in debt, and $16,000 a month is simply not enough to service his debt payments. So, he has filed a Chapter 13 bankruptcy, to attempt to reorganize his finances.

Chapter 13 and mortgage modification

A frequent topic of discussion in relation to mortgage problems and bankruptcy is how bankruptcy may help you obtain a mortgage modification. Because mortgages are not subject to a "cram down," meaning the loan would be reduced to the current value of the underlying property, you have to be able to afford your current mortgage payments for a bankruptcy to be helpful.

Cancer may cause bankruptcy

When people think of the reasons a person has to file bankruptcy, many probably think of profligate spending with a credit card as a primary cause. While credit cards can contribute to the creation of overwhelming debt, a more frequent cause is the financial disaster that accompanies severe medical problems. In a very short time, medical expenses and bills can swamp the average person's ability to pay, leaving no way out but bankruptcy.

Contact the Firm

Get Sound Advice In A Free Consultation

For sound bankruptcy advice you can count on, from a skilled lawyer who truly cares about your future, contact the Louisville Law Office of Allan E. Dunaway, PLC. We have two convenient locations: Louisville, Kentucky, and Jeffersonville, Indiana. Our main office in Louisville is located off the beaten path so you won't have to deal with downtown traffic and can pull right up to our door and walk right in.

Call us at 502-785-1005, or send an email message. Our law firm welcomes the opportunity to serve you in any way we can.

If for some reason personal bankruptcy is not for you, if you do not qualify for the Chapter 7 approach via the "means test" and Chapter 13 reorganization is not the answer, Allan E. Dunaway works hard to inform you of other appropriate means of debt settlement that suits your unique needs.

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