The most popular type of debt relief for consumers and businesses is also referred to as a straight bankruptcy. For individuals, Chapter 7 allows you to eliminate (“discharge”) most common debts such as:
Old utility bills
Old cell phone bills
The most common myth about Chapter 7 is that you have to surrender your home or cars to qualify. You DO NOT have to surrender your home or cars to successfully complete a Chapter 7. The bankruptcy code provides for “exemptions” that let you keep a certain amount of equity in your home, vehicles, and other household items. In almost all cases, you can keep money in your 401(k) or other retirement accounts.
You need to meet with an attorney about all of your options in a Chapter 7, to decide whether you can keep and reaffirm on these debts, or whether you should surrender them. Your attorney will also need to gather information about how valuable your property is, to see if you have too much equity to exempt in a Chapter 7.
Available exclusively to municipalities, allowing them to restructure their debts. Our firm has conducted a Chapter 9 analysis for a small municipality, and determined that it was not feasible. Though these cases are very rare, the unique set of circumstances facing many municipalities in Kentucky means that there may be more of these cases filed in the near future.
Starting up your own business often pits you against more seasoned companies with years of experience and name recognition. Changes in the market, or general economic downturns often cause successful business to suffer sudden financial difficulties.
The Options You Never Knew You Had To Save Your Business
Noah R. Friend Law Firm, PLLC, has represented multiple businesses in the United States Bankruptcy Court. We can help you to determine whether you can make the adjustments needed to keep your business open, or whether it is time to shutter business operations.
We help our clients take a step back and explore all options. We let them know that closing their doors or even filing bankruptcy may not be an option as of yet. Rushing to a Chapter 11 business bankruptcy filing can be cost-prohibitive and create more financial problems that will have to be revisited. There may be other strategies prior to taking drastic steps. Regardless of whether debts need to be negotiated, or a bankruptcy needs to be filed, we can assist you in coming up with the best options for you and your business.
Much more rarely filed than Chapters 7, 11, or 13, Chapter 12s are designed specifically to help family farmers with the unique set of circumstances that comes with the farming industry. Payment can be established based on harvest and payment schedules, and there are opportunities to adjust payments for equipment and in some cases, land itself.
Chapter 13 is a personal “reorganization” bankruptcy, that allows the Debtor to adjust their debts and payments, in order to keep the things that they want to keep, while eliminating burdensome debts. People usually have to choose Chapter 13 for one of the following reasons:
They make too much money to qualify for Chapter 7;
They are behind on mortgage payments and want to save their home;
They have had a car repossessed, and can’t afford to immediately catch up the payments;
They are “underwater” on a car, or have a second mortgage, and need to adjust the balance to pay less;
They owe non-dischargeable taxes to the State or Federal Government, and need to set up a payment plan they can afford;
They have tried Chapter 7, and due to a problem with a lien on a house or car, want to set up payments to save their property
Chapter 13s establish what is normally a three-to-five year payment plan. Each case is different, and your plan payment will depend on a wide range of circumstances; you need to discuss your entire financial situation with your attorney to determine what is best for you.
Our firm has experience in the Kentucky Court of Appeals, the Kentucky Supreme Court and the United States Court of Appeals for the Sixth Circuit. If you need assistance in reviewing your case and deciding whether appeal is appropriate, timing is extremely critical, as missed deadlines in appeals cases are often impossible to fix. Contact us today if you need assistance on an appeals case.