Consumer Bankruptcy Lawyers in Lexington, Kentucky

Find the right Consumer Bankruptcy attorney in Lexington, KY

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Bankruptcy is a legal procedure allowing a person or business to have their debts absolved, in part or in whole. It is normally treated as a last resort, because, while it can prevent financial catastrophe, it has some huge long-term consequences. This warrants careful consideration of the costs and benefits. Bankruptcy is a creation of federal law, and goes through federal courts. Therefore, the procedure governing bankruptcy in Kentucky will be roughly the same as it is anywhere else in the U.S. But individual courts have different rules for what property is exempt, so you should consult a local Lexington, Kentucky before you file.

Chapter 7 Bankruptcy in Lexington, Kentucky

In Lexington, Kentucky, there are 2 common forms of commonly-used consumer bankruptcy: Chapter 7 and Chapter 13. Chapter 7 involves liquidation of some of a debtor's assets. It requires that a certain percentage of the debtor's property to be sold to pay off as much debt as possible. The majority of property that most people own, however, is exempt. This normally includes homes, vehicles, retirement accounts, and others. These are not available to creditors.

Once the qualifying property is sold, and the funds transferred to the creditors, the dischargeable debt is cleared. Some types of debt, however, can't be absolved in Chapter 7 Bankruptcy in Lexington, Kentucky. These include student loans, criminal fines, and taxes, among others. If most of your debt can't be absolved, Chapter 7 might not be the best choice for you.

Chapter 13 Bankruptcy in Lexington, Kentucky

Chapter 13 Bankruptcy in Lexington, Kentucky is very different from Chapter 7. Whether or not it is a better option is highly dependent on the facts of each particular case. Chapter 13 bankruptcy does not discharge debt. Instead, it restructures it. This involves the bankruptcy court coming up with a new payment plan that supersedes the terms of the contracts that gave rise to the debt in the first place. This results in an altered payment plan that the debtor should find manageable, if he or she can make a few sacrifices.

Which Type of Consumer Bankruptcy Should I File in Lexington, Kentucky

This depends entirely on the facts of your individual case. If you have a decent amount of steady income, and a large amount of non-exempt property which you don't want to part with, Chapter 13 might be the best option for you. If most of your property is exempt, and you don't have much steady income, Chapter 7 might be the best option.

In any case, you should talk with a local Lexington, Kentucky bankruptcy Attorney. Your Attorney can advise you of your options and inform you of their likely outcome. This will make it much easier for your to make an informed choice.

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Life in Lexington

Lexington is the "Thoroughbred City" and self-proclaimed "Horse Capital of the World." Home to three World renown horse-racing tracks that include Keenland which opened in 1936, the Red Mile Harness Track which is the oldest in Lexington, and the new Kentucky Horse Park. There may be an abundance of gambling in Lexington but the economy is known for its stability. Forbes Magazine named Lexington the 5th best city for "Business and Careers." There's an abundance of technology research and high tech industries like Lexmark International, Hewlett Packard, and Affiliated Computer Services as well as government facilities. Such a stable economy makes Lexington a standout city in the United States and quite attractive to job seekers.

One of the major government employers in Lexington is the Lexington-Fayette County Governments. Lexington is the seat of Fayette County, Kentucky and therefore has many of the administrative buildings, courts, jails, and political facilities. A number of lawyers call Lexington home since there are so many local courts. Lexington lawyers can consult on any type of case heard in Lexington and Fayette County Courts including personal injury, probate, criminal, divorce, and child custody cases.

The City of Lexington's largest employer is the University of Kentucky, which offers a renown College of Medicine and over 10,000 local jobs. The University of Kentucky draw a number of students and top professionals. Don't forget about the American history for tourists either. The Bluegrass Festival and Ashland: The Henry Clay Estate draw tourists from near and far.