Bankruptcy Attorney Louisville KY - Chapter 7 & 13 Relief
Helping You Achieve Financial Relief in Louisville, Shepherdsville, Burlington and Shelbyville, KY
If debt has become impossible to manage, you are not alone — and you are not out of options. At Fernandez & Moloney PLLC, our bankruptcy attorneys help individuals and families in Louisville, Shepherdsville, Burlington, and Shelbyville, KY reclaim control of their finances. Whether you are facing wage garnishment, mounting medical bills, or constant calls from creditors, we can help you understand your options and take action.
The Automatic Stay: Creditor Harassment Stops Immediately
One of the most immediate and powerful protections bankruptcy provides is the automatic stay. The moment your case is filed, federal law requires all collection activity to stop. That means no more phone calls, no more letters, no more lawsuits, and no more garnishments. For many of our clients, this single protection brings relief they have not felt in months or years.
Chapter 7 Bankruptcy: A Fresh Start
Chapter 7, often called liquidation bankruptcy, is the fastest path to debt relief for those who qualify. It discharges most unsecured debts -- credit card balances, medical bills, personal loans, and more -- typically within four to six months of filing. Many clients are surprised by how quickly the process moves.
To qualify for Chapter 7, you must pass the means test, which compares your income to the median income for a household of your size in Kentucky. If your income is below the threshold, you generally qualify. If it is above, there is a secondary calculation that looks at your disposable income. Our attorneys will walk you through the means test in your consultation so you know where you stand before you commit to anything.
A common concern is what happens to your property. Kentucky law provides exemptions that protect certain assets -- including equity in your home, your vehicle up to a set value, retirement accounts, and household goods. In many Chapter 7 cases, clients keep everything they own. We will identify every exemption available to you and work to protect your assets throughout the process.
Chapter 13 Bankruptcy: Reorganize and Recover
If you do not qualify for Chapter 7, or if you want to catch up on missed mortgage or car payments and keep your property, Chapter 13 may be the right path. Chapter 13 allows you to restructure your debt into a manageable repayment plan lasting three to five years, after which remaining eligible debts are discharged.
Chapter 13 is particularly valuable if you are behind on your mortgage and want to avoid foreclosure, or if you have a vehicle you want to keep that you have fallen behind on. The repayment plan stops collection actions just as the automatic stay does in Chapter 7, giving you breathing room while you get back on track.
What About My Credit?
Bankruptcy does affect your credit -- that is simply the truth. A Chapter 7 filing remains on your credit report for ten years; a Chapter 13 for seven. However, for most people who are already struggling with missed payments, maxed-out cards, and collection accounts, the damage to their credit is already significant. Bankruptcy stops the ongoing harm and gives you a defined starting point for rebuilding.
Many of our clients are surprised to find that they begin receiving credit offers within a year of their discharge. A clean slate, managed responsibly, can put you in a stronger financial position than years of struggling with unmanageable debt.
What Does It Cost?
The cost of filing bankruptcy includes court filing fees and attorney fees. We understand the irony of worrying about affording a bankruptcy attorney when you are already struggling financially -- which is why we offer a free initial consultation and work with clients on fee arrangements. Do not let uncertainty about cost prevent you from exploring a solution that could eliminate tens of thousands of dollars in debt.
Why Choose Fernandez & Moloney PLLC?
Our attorneys bring years of experience helping clients throughout the Louisville metro area navigate bankruptcy with clarity and confidence. We take the time to understand your specific financial situation, explain every option available to you, and guide you through the process step by step. You will never feel alone in this.
If you are considering bankruptcy or simply want to understand your options, contact us today for a free, no-obligation consultation. Take the first step toward a debt-free future.
