DEBT THAT HAS BECOME UNMANAGEABLE HAS LEGAL SOLUTIONS

Bankruptcy Representation in Covington for Individuals and Families Seeking Relief Under Federal Law

The moment a bankruptcy petition is filed, an automatic stay takes effect—a federal court order that immediately stops most collection actions, wage garnishments, foreclosure proceedings, and creditor contact. For someone who has been dealing with collection calls, threatened repossession, or a pending lawsuit from a creditor, that stay is often the first moment of tangible relief in months. The Berger Firm helps clients in Covington evaluate their options under federal bankruptcy law and guides them through the process from initial filing to discharge or reorganization.


The two most common individual bankruptcy chapters are Chapter 7, which liquidates non-exempt assets and discharges most unsecured debt, and Chapter 13, which creates a three-to-five-year repayment plan that allows filers to retain property while catching up on secured debt like a mortgage. Choosing between them depends on income, assets, the type of debt involved, and what the client is trying to protect. The Berger Firm conducts a thorough intake to identify which chapter is appropriate and whether assets are protected under Kentucky’s exemption schedule.


To review your financial situation and discuss which bankruptcy option may apply, schedule a consultation at the firm’s Covington office.

HOW CHAPTER 7 AND CHAPTER 13 DIFFER IN WHAT THEY PROTECT AND WHAT THEY REQUIRE

Chapter 7 is available to filers who pass the means test, which compares household income against the state median and evaluates disposable income. Filers who qualify receive a discharge of eligible unsecured debts—credit cards, medical bills, personal loans—typically within four to six months. Kentucky’s exemption schedule protects certain property from liquidation, including a homestead exemption, retirement accounts, and specific categories of personal property. The Berger Firm maps each client’s assets against those exemptions before filing to establish what is protected.


Chapter 13 is used when a filer’s income is too high for Chapter 7, when they are behind on a mortgage and want to prevent foreclosure, or when they have non-exempt assets they want to keep. The repayment plan must be approved by the bankruptcy court and funded by the filer’s disposable income over the plan period. Successfully completing the plan discharges remaining eligible unsecured debt at the end.


Both chapters permanently discharge eligible debts, which means creditors are legally prohibited from collecting those obligations after discharge. The Berger Firm prepares and files all required schedules, attends the meeting of creditors with the client, and addresses any objections from the trustee or creditors during the process.

Bankruptcy involves federal law and court procedure that most people have never encountered before. These are the questions that come up most often during initial consultations.

WHAT CLIENTS TYPICALLY ASK ABOUT THE BANKRUPTCY PROCESS

  • What is the difference between dischargeable and non-dischargeable debt in bankruptcy?

    Most unsecured consumer debt, including credit card balances, medical bills, and personal loans, is dischargeable. Student loans, recent tax debts, domestic support obligations, and debts arising from fraud or intentional misconduct are generally not dischargeable. The Berger Firm reviews each client’s debt profile to identify which obligations will survive a discharge.

  • How does the means test determine Chapter 7 eligibility?

    The means test compares a filer’s average monthly income over the six months before filing against the Kentucky median for a comparable household size. Filers below the median generally qualify. Those above the median go through a second calculation that evaluates allowable expenses and disposable income. The firm works through that calculation during the intake process.

  • What property is protected from liquidation under Kentucky’s bankruptcy exemptions?

    Kentucky provides exemptions for equity in a primary residence up to a specified amount, retirement and pension accounts, a vehicle up to a certain value, household goods and furnishings, tools of the trade, and other categories. The Berger Firm reviews each client’s assets against the current exemption schedule before filing.

  • How does the automatic stay protect a filer once bankruptcy is filed?

    The automatic stay prevents creditors from initiating or continuing collection lawsuits, wage garnishments, bank levies, repossession actions, and most foreclosure proceedings from the moment of filing. The stay remains in effect through the bankruptcy process and is a central protection the filing provides.

  • What is the meeting of creditors, and what does it involve?

    The meeting of creditors, sometimes called a 341 meeting, is a brief hearing before the bankruptcy trustee at which the filer answers questions about the information in their schedules. Creditors may attend but rarely do in consumer cases. The Berger Firm attends with each client and prepares them for the questions typically asked.

The Berger Firm handles bankruptcy matters for clients from Independence, Erlanger, Edgewood, and Fort Mitchell. To arrange a review of your financial situation and the options available, contact the firm at 118 W. 5th St., Covington, or call 859-431-1000.