Florence, Boone County, KY | Covington, Kenton County, KY
Bankruptcy is a federal court process designed to help consumers and/or businesses eliminate their debts or repay them under the protection of the bankruptcy court. Bankruptcies can generally be described as either "liquidations" or "reorganizations."
What is a Chapter 7 bankruptcy?
Chapter 7 is the "liquidation" variety – property can be liquidated to pay off as much of your debts as possible, while leaving you with enough property to make a fresh start.
A Chapter 7 is also known as a "straight” or "traditional" bankruptcy. Most of your unsecured debts may be erased. You get to keep any property that is classified as exempt under the state laws available in your state. The court appoints an individual known as a Trustee to oversee your bankruptcy. The Trustee usually is a local attorney. The Trustee in a Chapter 7 must ensure that all applicable laws are being followed and represents the creditors' interests in the bankruptcy proceding.
What is an Automatic Stay?
The moment a bankruptcy petition is filed, an automatic stay is issued by the court to all of creditors which is an injunction that automatically stops, immediately, all lawsuits, foreclosures, repossessions, wage garnishments, and collection activity against you.