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Bankruptcy Representation in Corbin Kentucky BANKRUPTCY Under federal law I am a debt relief agency and I am required to disclose to you that I help people file for bankruptcy. Your right to file for bankruptcy is derived from Article one, section eight of the United States Constitution. However, just because you have the right to file for bankruptcy protection doesn't mean that you should exercise that right. Bankruptcy is a serious matter which can have severe adverse consequences on your ability to obtain credit in the future. You should not file bankruptcy unless it is a last resort. But if it is a last resort, you can file for relief from your debts, obtain the fresh start the law allows you and again become a productive participant in the economic life of our country rather than continue to struggle under a burden of debt you have no reasonable prospect of repaying. If you are struggling under a burden of debt which appears to you to be impossible to repay, you should call my office at (606) 528-3027 to obtain a free consultation concerning your financial affairs. Allow me to be your debt relief agency and assist you in filing for bankruptcy protection in order to obtain the fresh start you are entitled to under the law. TYPES OF BANKRUPTCY There are two types of bankruptcy available to consumer debtors. One type is chapter 7 bankruptcy in which your debts are discharged and you simply don’t owe them any more. The other type is chapter 13 bankruptcy in which you adopt a plan or budget and under take to pay off your debts or some portion of your debts over some period of time. The advantage of filing a chapter 13 is that if you get into financial difficulty again you can generally re-file a chapter 13 whereas if you file a chapter 7 you must wait at least 8 years before you can file chapter 7 bankruptcy again. CHAPTER 7 BANKRUPTCY
Chapter 7 bankruptcy is generally available to anyone whose gross income is below the state median income. The state median income varies depending upon the number of persons in the household and also changes from time to time. If your gross income is above the state median, you may still be able to file chapter 7 bankruptcy but you will be required to provide information regarding your expenses and whether you qualify for a chapter 7 bankruptcy will depend upon the result of calculations in which your expenses are deducted from your gross income. These calculations are sometimes referred to as the "means test". CHAPTER 13 BANKRUPTCY
If your gross income is in excess of the state median income for the size of your household and if the "means test" results in the determination that you cannot file chapter 7 bankruptcy, then you must file chapter 13 bankruptcy or not file for bankruptcy protection at all. In a chapter 13 bankruptcy you must propose a "plan" which is, in essence, a budget. That plan is formulated by listing your reasonable expenses and subtracting those reasonable expenses from you gross income. The difference between your gross income and your reasonable expenses is your disposable income. Your plan must propose to pay your disposable income over the duration of the plan (3 to 5 years) to the bankruptcy trustee who will distribute those payments, pro rata, to your unsecured creditors. Your plan must be approved by the trustee and it must provide, among other things, that the unsecured creditors receive at least as much as they would have received had you filed a chapter 7. There may be other rules you will be required to obey, depending on your circumstances, when you file chapter 13 bankruptcy and there are circumstances in which it would be to your benefit to file chapter 13 bankruptcy even though you are allowed to file chapter 7 bankruptcy.
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