Debt Collection Process

Has anyone filed bankruptcy in KY since the laws changed? Would your share your experience with me?

I am considering filing and want to know what to expect, if I qualify for Ch.7, will I be able to keep my car, how much will it cost, how long with the process take, etc...

Public Comments

1. It is pretty much the same time frame as before. The main differences are you must take a class before you file and a longer one before your discharge. You must have below the median income for a family of your size in the state or you can be forced into a Ch. 13, but you are allowed certain deductions from your income, and certain income such as Social Security is not counted. Whether you can keep your car in a Ch. 7 is basically the same as before--can you pay for it, will the creditor work with you to allow you to do so if you can't pay the full value at once, and will it hurt your other creditors because you have too much equity. The rules on cars has changed in Ch. 13 but not in Ch. 7. The filing fee is roughly $300. How much an attorney charges will depend on the area in which you live, the experience of the attorney and how complicated your case is. The going rate in SE KY is usually between $1000-$1500.
2. You will need to consult with a local bankruptcy attorney, per the last post, it depends on what area you are in and what the attorney is charging. There is a standard filing fee, but, the attorney can basically charge what they feel like for each chapter. The range on a chapter 7 can be 500.00 to 1500.00 I filed last year in MS and total for a chapter 7 was 1200.00 A chapter 13 is more as there is more involved in the case. Most attorney's will see you free the first time. Once they review your income, assets, debts and taxes, they will be able to determine what you qualify for. In order to qualify for a chapter 7 you have to take a means test which is based on median household income and the attorney will be able to tell if you qualify for it. With the new laws you are required to take a credit counseling course before your 341 Creditors Meeting, and one after the meeting, approx 30 days after, and the whole process takes roughly 5 to 6 months from start to finish. If you qualify for a chapter 7, yes you can re affirm on the loan and continue to pay as agreed, the attorney will be able to tell you more on this and how it works. You can review more information on bankruptcy at their offical website...www.usbankruptcy.gov Good Luck!