Kentucky residents with overwhelming consumer debt may be interested in repayment options, including those that come after debt is discharged in bankruptcy. Depending on the specifics of the debt, some borrowers may still wish to pay these debts when there is no legal need to do so.
After a bankruptcy, whether a Chapter 7 or a Chapter 13 bankruptcy, debts are often discharged as long as the bankruptcy conditions are met. However, when a debt is owed to a family member or if there are other reasons to make good on a debt, these discharged debts may still be paid.
When a creditor attempts to initiate collection proceedings on a discharged debt, the borrower should petition a court to reopen the bankruptcy case. This will often lead to a permanent injunction against the creditor, preventing them from taking collection actions. Failure to adhere to this injunction may be held in civil contempt. This contempt charge can lead to fines and other sanctions imposed on the creditor.
In other cases, an employee may fear that they may be fired from their job due to having debts discharged. Federal law prohibits discriminating against an employee solely because they filed for bankruptcy. This includes actions such as firing and hiring the employee or failing to give or renew a license due to the bankruptcy filing. These laws apply to both private and government employers.
When unexpected life changes or other financial challenges lead to unpaid bills, an attorney may be able to help. The attorney may be able to negotiate a debt relief plan with creditors or explore other options, including filing for Chapter 7 bankruptcy. The attorney may then file the appropriate action in bankruptcy court and represent the person throughout the process.