Bankruptcy FAQ
What is a Chapter 7 Bankruptcy?
A Chapter 7 bankruptcy gets rid of your debt. Although you cannot get rid of certain debts (like child support), most people get rid of all debts.
What is a Chapter 13?
A Chapter 13 is a plan to repay debt in part or in full over as many as five years. A Chapter 13 can force a mortgage company to give you time (up to five years) to catch up on mortgage payments. Your plan can also force the IRS into a payment plan.
Can bankruptcy help with tax problems?
Yes. Bankruptcy will stop a tax levy. It can also get rid of some taxes. We can also always force a payment plan to ease the buden of repayment.
Will I lose my home, car or other property?
Bankruptcy is designed to give you a fresh start. Most filers keep the property they want. Each person is allowed to exempt property. This includes your home, car, 401(k) and other property.
Keeping secured property will require some action on your part. In a Chapter 7 you may reaffirm (make payments) or possibly redeem personal property (pay only the actual value). In a Chapter 13 your plan will require some payments but they may be lower than your contract payment.
Will I be able to get rid of my debts?
Most debts are discharged by filing bankruptcy. This includes credit cards, loans, and medical debts. Some debts, however, are not discharged. These include most student loans, certain taxes, child support and maintenance, and debts incurred by fraud or with a false financial statement.
How long does bankruptcy stay on my credit?
A bankruptcy can stay on your credit report for 10 years. This is covered by the Fair Debt Reporting Act.
Divorce FAQ
What are the grounds for Divorce in Kentucky?
There is only one ground for Divorce in Kentucky and that is “irretrievable breakdown.” That means one party must state that they believe that the marriage is irretrievably broken and cannot be fixed. Both parties do not have to agree that the marriage is irretrievable broken—one side’s declaration is enough.
This was introduced with the “no fault” laws enacted over 30 years ago and is still the only basis for getting divorced. Most people we see have good reasons for getting a divorce but, frankly, these reasons do not matter in terms of granting the divorce.
How much does a divorce cost?
Basically, the higher the level of conflict the more money it is going to cost you. Uncontested divorces are the least expensive while highly contested cases that end up in trial are the most expensive.
At Lowen and Morris we try to resolve conflicts, not create them. We believe that part of our job is to ensure you do not waste money on things that do not need to be fought over. However, we also do our best to make sure we do not “give away the farm” without a fight. Ultimately settlement is up to you, but we try to steer you in a direction that minimizes conflict. We have been doing this long enough that we can usually advise you as to when you want to fight and when you want to look for other solutions.
Will it cost a lot of money to determine if I want to hire you or someone else?
No. It has always been the policy at Lowen and Morris that although we will ask that you bring a small retainer with you, if you decide that you do not want to hire us after our consultation it will cost you nothing. We are as interested in you being comfortable with us as we are being comfortable with you. Part of that means that we do not want you to be worried at our first meeting about asking a question or raising a concern for fear that it may cost you additional money.
How long does a divorce take?
The length of every divorce varies. If there are children, there is a 60 day waiting period after the case officially begins. If there are no children there is a 60 separation requirement, but that may occur before we file. Although, we cannot and do not make guarantees as to time, if everything is agreed to, three to four months is not an unreasonable estimate for an uncontested divorce with kids and four to six weeks without.
Will I have to go to a divorce class/counseling?
No, however, there is a required educational program called Families in Transitions that all parents who have children must attend. Children go to this class if they are between the ages of 5-17.Children do have to attend classes at the same time as the parent. These classes will help them understand that the divorce is not their fault.
Am I going to have to go through mediation?
The answer is generally “yes,” but it depends. Mediation typically occurs when it becomes apparent that the case is not going to be quickly resolved by the parties with the exchange of a phone call or a letter. It’s a process we at Lowen & Morris see as an excellent problem solving method.
We are one of the most sought after mediation law firms in Louisville. Mediation is a process that allows you to have full control of your decisions with your spouse, whereas in Court the result is dictated by a Judge. No matter how good or bad the Judge may be, you have no say in his or her judgment. Mediation saves money, seeks solutions and can minimize conflict. A typical mediation runs from 2-4 hours.
Why wouldn’t I want an attorney that sounds more aggressive than you do?
We find that the Judges do not like lawyers who yell, accuse and grandstand. Agressive tactics tends to lead to bad results for you in court. Grandstanding stirs the pot and you simply spend more money and have the illusion that your attorney is helping you. In reality, more aggressive attorney actions often fail to end in results that benefit their clients. At Lowen & Morris we try not to grandstand or cheerlead; we try to solve your problems.
What kind of guarantees can you give me?
We suggest any lawyer that gives you a guarantee other than that they will work hard and use their best efforts is not being honest with you. No one cannot predict the outcome of your divorce.
Can I pick which Judge I want?
No. In Jefferson County your Judge is chosen alphabetically by the female's last name.
If my spouse and I believe we agree can we just use one lawyer?
Yes, but we can only represent one of you. The other party will simply have to sign papers. We believe it is impossible to represent both sides. There may come a time when we need to give our client advice that is contrary to the best interests of the other side and it is impossible to be on both sides of a question. What we normally do when we represent one side is send a proposal to the other side and give them an opportunity to read it before signing. They may or may not want to consult an attorney. We do that in a significant number of our cases, which we consider uncontested divorces.
How does child support work?
Child support is largely governed by a chart which you can view HERE. There is also an explanation of how it works. There are, however, many exceptions having to do with under-reporting of income, parenting schedules, and other things. You should schedule an in-person consultation to get a better feel for your individual situation.
What is joint custody and does it mean there is no child support?
Custody has virtually nothing to do with a schedule or child support. It has to do with the power to make decisions. Joint custody is the norm in Jefferson County and we encourage people not to spend money fighting over a label but instead to work toward solutions that actually affect them.
People are actually less interested in getting custody than in knowing when they will see their children and what their financial obligations will be. Once again we at Lowen & Morris seek results that matter, not labels that cost money. It is true that in certain situations child support can vary greatly depending on the schedule. That is something you will need to discuss with us personally in your individual discussions.
What if I don’t know where my spouse lives?
If you don’t know where your spouse lives currently, we can still follow through with your divorce although we may be limited on how to divide property or obtain child support.
What if my spouse lives out of state?
We can still follow through with your divorce if your spouse lives out of state. However, there may be limited items that we can obtain for you, such as division of property or support. It’s important to note that in order to qualify for divorce in Kentucky one of you has to have resided in Kentucky, not necessarily Louisville, for six months before filing.
Does it matter if my spouse has been cheating on me or is the at fault person in the divorce?
“Bad behavior” usually only matters as it affects the children directly in a custody action. Financially, it only matters when the bad behavior resulted in the loss of marital money, such as gambling away family monies that could potentially be alimony or maintenance.
Do I have to stay in the house with my spouse? Do I lose rights if I leave?
Generally speaking, you do not lose any rights if you leave. But it does affect custody since the children do not necessarily automatically move unless there is a Court Order. Also, it could become problematic if you want back in the house. You should certainly consult us before you make any decisions to move out.
Can I make my spouse move out of the house?
Generally speaking, no, unless there has been violence.
Can Domestic Violence Orders (DVOs) and Emergency Protection Orders (EPOs) affect my case?
They do matter because there is a finding by a Court that there has been violence perpetrated by one spouse to another.
Will my spouse have to pay my fees?
It depends. The greater the disparity of income, the greater the likelihood that the spouse with the higher income has to pay. That is not related to the quality of the work of the lawyers.
Does it matter whose name things are in?
Generally speaking, no. For example, a retirement or 401K may be in your name but that doesn’t mean that it is yours.
Can I keep the things from my family, that I had before, or got as a gift during the marriage?
Usually, yes. However, there is always a gap between what you know and believe and what you can prove.
What’s the difference between Court Costs and Fees?
Fees are what attorneys use to pay for staff, taxes and other expenses. Costs are paid directly to the court. Filing a divorce costs $153. Reopening cases typically costs $50. There are also costs for appraisals, mediation, etc.
What can be changed after the divorce is final?
Anything involving the children can be changed such as support, schedules, insurance, daycare costs and the like. Anything involving property is typically not modifiable, but maintenance can be. Once the Court has assigned property to one individual from another, for example an automobile, that is rarely, if ever, discussed again. However, if circumstances change certainly schedules, child support, and obligations between the parties are subject to court review and modification as necessary.
We have tried to answer the most common questions but be aware that your situation is unique. The answers to many of your questions can ultimately only be answered in court—which is probably not where you want to end up.
For a better understanding of your situation, we encourage you to make an appointment with us. This consultation is free of charge and is only intended to give you some general outlines of what you may be facing in your situation.
Child Support Chart
CALCULATING CHILD SUPPORT IN KENTUCKY
In Kentucky there are child support guidelines that control most cases, but not all of them. To figure out what your child support might be, you will need to meet with us to determine exceptions or reasons the following does not apply to your situation. The purpose of this webpage is to explain how to calculate support in a standard case.
For the sake of clarity, we will use the names John and Mary in our example—and we will assume John pays and Mary receives support.
The law is clear that gender has nothing to do with child support. If the children are residing primarily with Mary, then she would get support from John. If the children’s living situation is reversed, John would get support from Mary. There are clear exceptions when time-sharing arrangements are not traditional, but in a standard situation here is how support is calculated: First you determine John's gross monthly income. That is before taxes come out and includes all sources including overtime and bonus. The Courts vary on how to annualize that, but anything that is income counts.
1. First you determine John's gross monthly income. That is before taxes come out and includes all sources including overtime and bonus. The Courts vary on how to annualize that, but anything that is income counts.
2. Then we calculate Mary's income. In this example let's assume that John's gross income is $4,000 a month and Mary's is $2,000. You add John and Mary's income together for a total $6,000. Then you look at the chart for the corresponding gross monthly income, then for the number of children in that gross monthly income category. For example, if there are two children, the gross amount of support is $1,157. How much John pays is a percentage of income. $4,000 is 66.23% of $1,157 or $771 per month.
3. There are also two major additions and subtractions to support in regard to health insurance and daycare costs. If John has health insurance for the children which cost him $100 a month, his support would be reduced $33.33 because Mary would have to pay a third. If Mary had the insurance coverage, then John's support would increase by $66.67. In addition if there are daycare costs of $400 a month, that gets divided with the same 2/3 to 1/3 ratio. If Mary pays it then John has to pay extra; if John pays it his support is reduced on his amount.
4. Most support is paid by wage assignment, which is different than a wage garnishment. Child care is often paid separately from the base support because that varies.
It is important to note that this is an example only. There are hundreds of exceptions. Typically the differences in calculating support involve what someone’s true support is and/or what it should be. Many people attempt to under-report their income. Also, if a child is less than four years old the court does not “impute” income to the person receiving support. There are also serious questions about how to deal with bonuses, overtime and other sources of income. For a more in-depth calculation of your support, always consult an attorney.