Chapter 7 Bankruptcy — Wipe Out Debt and Start Fresh
For many Kentuckians, Chapter 7 is the fastest and most complete path to financial relief — discharging most unsecured debt in about three months.
What Is Chapter 7 Bankruptcy?
Chapter 7 is the most common form of personal bankruptcy. It allows individuals and families to discharge most unsecured debt — credit cards, medical bills, personal loans, and more — through a straightforward legal process overseen by a federal bankruptcy court.
When you file Chapter 7, an automatic stay goes into effect immediately. Creditors must stop calling, garnishments must stop, and any pending lawsuits are halted — from the moment your case is filed.
How the Process Works
STEP 1
Filing Day
The moment your case is filed, the automatic stay takes effect. If you’re facing a wage garnishment, we can provide documentation the same day so you can notify your employer immediately.
STEP 2
The 341 Meeting
Three to six weeks after filing, you’ll attend a brief meeting with a bankruptcy trustee. Despite the name “meeting of creditors,” creditors rarely appear. The meeting typically lasts only a few minutes. We’ll prepare you thoroughly so you know exactly what to expect.
STEP 3
The Discharge
After the 341 meeting, there is a 60-day period during which creditors may object. Objections are rare. In most cases, the discharge order is signed around the 61st day — meaning your debts are legally eliminated in approximately three months from filing.
What Chapter 7 Can Eliminate
- Credit card debt
- Medical bills
- Personal loans
- Most civil judgments
- Utility arrears
- Some tax debts (case-specific — call us to find out)
What Chapter 7 Cannot Eliminate
- Most student loans
- Child support and alimony
- Recent tax debts
- Debts from fraud or intentional wrongdoing
Do You Qualify?
Not everyone qualifies for Chapter 7. Eligibility is determined largely by 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 median, you generally qualify automatically. If it’s above, additional calculations apply. The best way to find out is to speak with one of our attorneys — we’ll review your situation at no cost and give you a direct answer.
What About My Credit?
This is one of the most common concerns we hear — and one of the most misunderstood. Yes, a bankruptcy will appear on your credit report. But here’s what most people don’t realize: your credit can begin recovering faster than you think.
When you file bankruptcy, many of the individual debts dragging down your score are removed from your credit report entirely. For many clients, that effect actually outweighs the negative impact of the filing itself — meaning their credit score improves shortly after filing.
As for buying a home: bankruptcy does not permanently disqualify you from homeownership. Under current FHA guidelines, you may be eligible for a mortgage as soon as two years after a Chapter 7 discharge, provided you meet income, credit score, and other standard requirements.
Why Choose Whitford & Owen for Your Chapter 7?
We have filed thousands of Chapter 7 cases across Kentucky. We practice bankruptcy exclusively — no personal injury cases, no real estate closings, no family law on the side. When you work with us, you get attorneys who handle this process every day and know every step of it.
We’ve helped clients discharge debts ranging from a few thousand dollars to several hundred thousand. Whatever your situation looks like, we’ve likely seen something similar.
Free consultations. Same-day appointments available. We serve all of Kentucky.