Legal Question in Bankruptcy in Kentucky

Re: debt help

When reviewing chapter 7 petitions, the U. S. Trustee compares the monthly income to the monthly expenses such as rent / mortgage, food, clothing, car expenses, etc. There are guidelines which prevent a debtor from claiming that, for instance, his cost for food for a family of one is $1,000 per month. If there is no significant excess of income over expenses, the debtor can file chapter 7. However, another factor which must be considered is how much non - exempt property he has (eg. equity of over $2,500 per debtor in a car; equity of over $5,000 in a house, etc.) If there is excess income, or if a debtor wishes to keep property over and above that allowed under the exemptions, a chapter 13 should be considered that would require a monthly payment to the Trustee for at least 36 months, but would allow the debtor to keep all the property. If you would like to discuss in more detail, please feel free to give me a call at 859-261-6811 (Newport KY office)