Legal Question in Bankruptcy in Kentucky

When can an individual file bankruptcy

My question relates to a relative who is living in Kentucky. We have just learned that this individual, who lives alone has run up debt in excess of $5,000 on his credit card. He owns a mobile home and the contents. His current income is $753 per month through social security disability. At this point he makes the the minimum payment each month but then gets cash with the credit card to meet obligations when his disability income runs out. This current debt has been accumulated in the past 12 to 18 months. At this rate total debt will continue to rise at the rate of $250 up to $500 per month. Total debt, including the discover card is about $6,500. Can he file bankruptcy and keep the mobile home and most of his personal positions, ie furnishings, etc.?


Asked on 2/26/98, 11:04 pm

1 Answer from Attorneys
Thomas Workman Law Offices of Thomas Workman

Bankruptcy filing for a relative

Bankruptcy filings are governed by federal law, but many states have enacted laws that relate to what a bankrupt filer can retain in the way of possessions. Your relative would likely have to file for bankruptcy in Kentucky, if he is a resident of Kentucky. A local attorney can evaluate what property he has, and what he can keep.

If your relative has monthly expenses, which would continue even if his or her debt was eliminated, that exceed monthly income -- then bankruptcy will not solve your relative's ultimate problem. Once your relative files for bankruptcy, they will no longer have the credit cards available to them, so how will they continue to go into debt at the rate of $250-500 per month? They will not be able to. Can they eat? live? Though not a "legal" problem per se, these are questions one should ask before considering a bankruptcy filing. There are organizations that can help to counsel your relative on debt management, available through local social services in many states.

This message is provided to assist you in structuring your thoughts when you speak with an attorney about your situation. I am not your attorney, and you are not my client, so this is not legal advice. Legal advice can only be given after a careful interview of the client by the attorney, and I have not had the opportunity to understand the significant issues that I must understand to render legal advice. You should contact an attorney in your state to discuss your situation. That attorney can give you the advice that your situation deserves, after carefully considering the issues that are legally significant in your situation.

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Answered on 3/02/98, 12:16 pm


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