Bankruptcy FAQs

Yes, now that the Supreme Court has guaranteed marriage equality for all U.S. citizens, same sex couples can file a joint bankruptcy as long as they are legally married prior to the date they file bankruptcy.

For couples, bankruptcy and divorce sometimes go hand in hand. Both offer a fresh start after other solutions have failed. At Lawrence & Associates Accident and Injury Lawyers, LLC, our attorneys can refer you to a Kentucky divorce attorney, and we have an Ohio divorce attorney in house.  A bankruptcy will not affect spousal support or child support, but a jointly planned bankruptcy between divorcing spouses will often be the best way for a couple to resolve joint debts apportioned in the divorce decree. At Lawrence & Associates Accident and Injury Lawyers, LLC, our attorneys can advise you on the best order in which to pursue divorce and bankruptcy, as well as whether you and your spouse should file a Chapter 7 bankruptcy or a Chapter 13 bankruptcy. Not everyone will combine a divorce and a bankruptcy in the same way.

Absolutely. If you choose to file for bankruptcy without including your spouse then your spouse’s social security number will not appear on the bankruptcy and there will be no effect on your spouse’s credit. Bear in mind that whichever spouse chooses not to file will not have any of their debts affected.

While a person’s credit score will drop initially after bankruptcy, in some cases the drop is not as drastic as you may think. Check out our videos on this subject for more details.

The advantage of filing is that there are realistic ways to rebuild your credit afterward — and with no debt, or lowered debt, you are in a better position to do so. Although bankruptcy can stay on your credit report for up to 10 years, with smart choices, many people will be eligible for a mortgage again before that time. In addition, most individuals can secure credit cards and car loans immediately after discharge, albeit with higher interest rates. After your bankruptcy is finalized, your attorney will give you some tips on rebuilding your credit and dealing with credit reporting agencies.

Bankruptcy can have an extremely positive impact on your life and give you…

• A fresh financial start
• Complete freedom from debt through Chapter 7 bankruptcy
• A manageable payment plan through Chapter 13 bankruptcy
• A positive cash flow
• An end to creditor harassment
• An end to stress and anxiety over your finances

In some cases, simply filing a one-time Chapter 7 or Chapter 13 bankruptcy cannot completely solve your financial problems. For example, if you have a great deal of both unsecured debt (such as credit card debt) and secured debt (such as a mortgage or a car loan), you may benefit from a Chapter 20 strategy. While there is no official “Chapter 20,” this concept involves first filing a Chapter 7 to eliminate your unsecured debt, and afterwards pursuing a Chapter 13 in order to lengthen the amount of time you have to pay off secured debt. Using this method allows you to return to a positive cash flow so you can protect assets such as your home and your car. While Chapter 20 has helped a lot of people secure a better financial future, it is not right for everyone. Your best move is to contact our firm for a free initial consultation where we can discuss the specifics of your unique circumstances. Regardless of your position, our firm can help you find the best debt reduction strategy for your needs.

People can have many misconceptions about bankruptcy, including the number of times you can file. The truth is, you can indeed declare bankruptcy more than once, and many individuals take advantage of this as part of a complete debt reduction plan. While you can only pursue a Chapter 7 bankruptcy claim once every eight years, you can file Chapter 13 almost an unlimited number of times. However, there are certain court-mandated time restrictions if you want to receive a discharge in Chapter 13 more than once.

The answer in most cases is yes. A lawyer at our firm can provide you with specific details about the exemptions that are available to you. At Lawrence & Associates Accident and Injury Lawyers, LLC will create a personalized debt relief plan for you, one that suits your needs. It will be designed to help you retain as much of your property as possible while providing you with debt relief.

At Lawrence & Associates Accident and Injury Lawyers, LLC, we take full advantage of all available property exemptions when we represent clients in bankruptcy proceedings. Our goal in your case will be to enable you to keep as much of your property as possible while obtaining maximum debt relief. In Kentucky, a person filing bankruptcy can choose to use either the Kentucky or federal property exemptions. In most cases, Lawrence & Associates Accident and Injury Lawyers, LLC recommends that our Kentucky clients use the more generous federal exemptions. However, Ohio bankruptcy filers are required to use Ohio’s state exemptions.

Some of the federal exemptions include…

• Personal home – $23,675 for a single filer/$47,350 for a married couple
• Vehicle – $3,775 for a single filer/$7,550 for a married couple
• Household goods and furnishings – $12,625 for a single filer/$25,250 for a married couple

Some of the Ohio state exemptions include…

• Personal home – $136,925 for a single filer/$273,850 for a married couple
• Vehicle – $3,775 for a single filer/$7,550 for a married couple (if both spouses are on the title)
• Household goods and furnishings – $12,625 for a single filer/$25,250 for a married couple

Many other items are exempt as well, such as tools of a trade. There is even a “wild card”, miscellaneous exemption that can be applied to any asset you want to protect. All qualified retirement accounts such as 401(k)s, 403(b)s and IRA accounts are exempt, as are 529 and Coverdell ESA contributions made more than two years before filing. You can also keep most unemployment benefits, workers’ compensation benefits and Social Security income.