Your domicile, and sometimes your residence, determines whether you can file bankruptcy, where to file, and what property you keep.
What’s Credit Counseling & Debtor Education?
These two requirements are quite straightforward to accomplish, but can trip you up if you don’t take care of them when you need to.
Bankruptcy Cases Can Be Voluntary or Involuntary, Individual or Joint
Almost all consumer bankruptcies are voluntary. Involuntary ones are mostly for businesses. Joint cases with your spouse save time and money.
The Bankruptcy Chapters–Chapter 7, 9, 11, 12, and 13
You file bankruptcy most likely under Chapter 7 or 13, or possibly 11. Ch. 12 is for farmers and fisherman, Ch. 9 for governmental entities.
Bankruptcy Roles: Debtor, Creditor, Lawyers, Clerk, Trustee, and Judge
Bankruptcy is a lot easier to understand and much more comfortable to go through when you know who’s who.
A Scenario about Debts from a Kentucky or Ohio Vehicle Accident
One example how debts from a vehicle accident, involving possible drunk driving, are handled in bankruptcy.
Debts from Unlawfully Driving while Intoxicated
If you injured someone by unlawfully driving while intoxicated, the resulting obligation can’t be discharged in bankruptcy.
Employee Wages and Benefits as a “Priority” Debt
If you owe an employee wages or benefits, it’s likely a priority debt. Same if you are owed wages or benefits. More likely to be paid.
“Priority” Income Tax Debt under Chapter 7
Income tax debt may be discharged–legally written off–in a Chapter 7 case. It just needs to meet some conditions.
“Priority” Support Debts Not Discharged under Chapter 7
A bankruptcy trustee would pay your “priority” debts ahead of other debts in an “asset case.” But what happens in a “no asset case”?
Treatment of “Priority” Debts under Chapter 7
Here’s what happens to “priority” debts in an “asset case.”
The Special Role of “Priority” Debts in Bankruptcy
What makes “priority” debts so special?
Illustrating How to Handle a Creditor with a Disputed Lien
Here’s a scenario showing how Chapter 13 solves problems that Chapter 7 doesn’t solve in dealing with a creditor’s disputed lien.