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July 2016 Archives

The bankruptcy process begins with the means test

Before Kentucky residents can file for Chapter 7 bankruptcy, they must take the means test. The test determines whether the debtor is eligible to file under that chapter by taking into account the debtor's income, monthly expenses and family size. Those who cannot qualify for Chapter 7 bankruptcy after taking the means test might still be able to file for Chapter 13 bankruptcy.

Chapter 13 bankruptcy and divorce agreements

Kentucky residents who have excessive amounts of debt may decide to file for Chapter 13 bankruptcy. Unlike Chapter 7 bankruptcy, Chapter 13 bankruptcy does not require a liquidation of non-exempt assets. Instead, people who earn a steady income can agree to settle their outstanding debts through a court-approved repayment plan.