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Carole Friend, Attorney |
Phone: 502 542-2398 |
Click to Access Western KY Bankruptcy Court Website |
Click to Access Lexington KY Bankruptcy Court Website |
Lesley Cayton, Attorney |
Phone: 859 317-1085 |
One key change in the new bankruptcy law is a provision requiring citizens to get professional debt counseling to avoid similar financial troubles in the future. This requirement is not a big burden, and should not deter you from filing for bankruptcy. |
In 2005, Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act. Part of the impetus behind the law was to discourage Chapter 7 filings and encourage more people to file for Chapter 13 reorganization of debts. |
Before you can actually file for bankruptcy, you must consult with an approved debt-counseling agency to discuss debt relief alternatives (e.g., negotiating debts with creditors, obtaining a second mortgage or consolidating/refinancing debts). This step involves a minor time commitment — it can often be done by phone or over the Internet. No matter what advice you receive from the credit counselor, you still have the legal right to file for bankruptcy. |
Shortly after you file for bankruptcy you must take a debtor education course. The purpose of this debt counseling education is to learn how to create and stick to a realistic budget so that you do not repeat the pattern that led to your current financial straits. |
Your bankruptcy will not be discharged until you complete the course. If you retain me as your bankruptcy lawyer, we can help steer you to an approved credit-counseling agency, including non-profit agencies. The course can be completed on your own schedule, and often can be done by phone or over the Internet. |