Steps to File for Bankruptcy in Kentucky

Denise Brown's Legal Direction, providing bankruptcy help for residents of Louisville and surrounding areas of Kentucky, offers this information on the steps necessary to file for bankruptcy :

1.  Gather appropriate documentation

You will need copies of the following documents in order to file for bankruptcy:

• Bank statements for the last six months
• Your tax returns for the last two years
• Income statements for you and your spouse
• Child support or spousal support payment statements
• Real estate documents such as deeds and mortgages
• Titles for any vehicles you own such as cars, motorcycles, boats, campers/RVs, etc.
• Credit counseling certificate or debtor’s education certificate
• Documents on any other loans or debts that you hold
• Copies of any assets you hold (such as stocks, bonds, insurance policies, etc)

2.  Decide if you will file Chapter 7 or Chapter 13 bankruptcy

There are two different types of bankruptcy in Kentucky.  Filing the wrong type of bankruptcy could cost you thousands of dollars, so it is important to understand their differences and which will work best for your situation.  An experienced bankruptcy lawyer will be able to explain the differences between Chapter 7 and Chapter 13 bankruptcy in detail and will be able to help you decide which type best suits your needs.

• Chapter 7
  When you file for Chapter 7 bankruptcy, your debts will be discharged and not repaid.  Instead, you are also allowed to keep some property, which is known as exempted property.  This property is to be used for you to start your life over.  The remainder of your property is repossessed by your lenders.
  

• Chapter 13
  A Chapter 13 bankruptcy allows you to pay back the amount equal to a Chapter 7 bankruptcy, but your payments are consolidated into a monthly payment.  This payment is sent to a trustee who then pays your creditors. 

3.  Take your Credit Counseling Classes

As per the law, you must take two Credit Counseling Classes.  This first class will help you determine if you need to file for bankruptcy and help you determine what type of bankruptcy to file.  You will then take the second class after you have already filed for bankruptcy.  This class will help teach you how to handle your personal finances better.  Your must attend these classes for your bankruptcy case to progress. 

It is important to work with a bankruptcy lawyer when filing as some laws have changed as of October 2005.  An experienced bankruptcy lawyer will be able help you understand these changes and how they affect your ability to file for bankruptcy.  Call Denise Brown's Legal Direction to learn additional things you will need for bankruptcy filings in Kentucky at 502-587-0331, or complete our web form.

Contact Legal Direction - Balanced Counsel at 502-587-0331 today for help with filing your bankruptcy or bankruptcy litigation or fill out our web form.