Law Office of Allan E. Dunaway, PLC

How to choose which type of bankruptcy to pursue

Many different types of debts can be discharged in a Kentucky bankruptcy. Almost every type of unsecured debt such as personal loans, medical bills and credit card balances can be addressed in both Chapter 7 and Chapter 13 proceedings. Secured debts such as mortgages and auto loans are also likely to be discharged in a Chapter 13 case. A few types of debts, such as back taxes, fines and child support, cannot be discharged.

Student loan debt is also unlikely to be discharged in a bankruptcy case. Instead, a borrower will probably need to switch to an income-based repayment plan. While both Chapter 7 and Chapter 13 bankruptcies can help a person get rid of debt, these methods are not necessarily created equal. Chapter 7 proceedings involve liquidating nonexempt assets and using the money to pay creditors. Liquidation bankruptcies are generally only available to those who have a low income. It may also not be the best choice for those with property.

In a Chapter 13 case, debtors generally retain property if they keep up with their plan payments. Furthermore, debtors who have cosigners may want to consider a Chapter 13 proceeding. This is because creditors cannot contact cosigners while a Chapter 13 case is ongoing.

Prior to filing for bankruptcy, it might be a good idea to have the help of an attorney. Legal counsel could provide more insight into why a Chapter 13 bankruptcy may meet the needs of an individual debtor. Benefits of this type of bankruptcy include the ability repay creditors over three or five years. This may help a person get caught up on past due bills in an affordable manner.

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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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