At the Friend Law Firm, our attorneys provide Kentucky residents and business owners with options to resolve their financial problems. In some cases, a difficult creditor, a foreclosure, repossession, or collection lawsuit can be resolved through negotiation. Other times, the best option is to seek relief under the United States Bankruptcy Code. Our firm has represented hundreds of individuals, families, and small businesses in the United States Bankruptcy Court. We have the experience to assist you in ending the harassment, garnishment, telephone calls and mailings that make debt so difficult to deal with. For business owners, we can help examine your situation to determine whether the business can be reorganized, and how to best protect the individual owner from problems associated with business debt.
Chapter Seven
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 credit cards, medical bills, personal loans, utility and cell phone bills, repossessed vehicles and foreclosed homes.
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.
Chapter Eleven
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.
There are 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.
Chapter Thirteen
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.
Chapter Nine
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.
Chapter Twelve
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.