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Download our manual with an entire section about Chapter 13 bankruptcy.

A Chapter 13 Bankruptcy does everything a Chapter 7 does – only better. First, Chapter 13 has more tools to deal with a wider variety of problems that Chapter 7 doesn’t solve. Filing a Chapter 13 also ensures a mortgage gets caught up over time. In addition, filing a Chapter 13 bankruptcy is appropriate if you don’t yet qualify for Chapter 7. Or, perhaps you have another Chapter 7 from less than eight years ago. If this sounds like your situation, I invite you to continue reading to learn what you need to know about filing your Chapter 13 Bankruptcy in Louisville, Kentucky.

Chapter 13 Bankruptcy Benefits

With a Chapter 13 bankruptcy, there are special benefits and tools that you don’t get with Chapter 7. Below is a list of possible benefits you may expect with Chapter 13.

  • You have the ability to strip and remove a Second Mortgage if the Second Mortgage has no equity.
  • Chapter 13 protects your property when you have too much equity that you would lose in Chapter 7. Assets that are lost in Chapter 7, are kept in Chapter 13 but you have to repay what Chapter 7 would have paid.
  • Protects a cosigner
  • Chapter 13 is voluntary and you can dismiss it. However, you cannot dismiss a Chapter 7 if the Trustee doesn’t allow it.
  • You eliminate or manage debts that are non-dischargeable in Chapter 7. Even non-dischargeable debts are stayed from collecting while bankruptcy is ongoing. Income taxes, domestic support, taxes, and student loans can be repaid or managed. Student loans and tax garnishments are stopped even if they are not discharged.
  • Priority debts are repaid at the expense of unsecured debts often with no or reduced interest or penalties.

Note, there is a cost—if you want to take advantage of the benefits of Chapter 13, you must commit your disposable income to repayment for 3-5 years.

Get the Time You Need to Get Back on Track

The cause of any bankruptcy is sometimes a temporary event. Consistently, the causes for bankruptcy are usually divorce, disability, death in the family, or job loss. Often, all you need is time. With time, you deal with your debts and put your finances back in order. That is exactly what Chapter 13 bankruptcy provides – time. In fact, often you just need enough time to get your mortgage modification. Chapter 13 gives you that time.

The temporary court order that stops collections is not so temporary in Chapter 13. The protection of the stay which stops collections lasts for 3-5 years. During that time, the debt is often charged off or sold to another debt collector and the debt goes away. Often, nothing is repaid in Chapter 13 bankruptcy to unsecured debts. Plans for repayment are common at 10% or less—0% is possible. However, the secured and priority debts must be paid or brought up to date.

Not only does a Chapter 13 bankruptcy allow you to catch up on a mortgage or auto loan, but it can also pay back income taxes or provide temporary relief from student loans while eliminating credit cards and other unsecured debts.

Get Your Free Consultation by Calling 502-625-0903

Half the attorneys who prepared Chapter 13 bankruptcy cases quit in 2005 when the law changed. The new law required detailed and accurate petitions supported by documentation. In California, well over 50% of the petitions filed since then have failed. Bankruptcy is not an area of the law where you can file a sloppy petition.

After 2005 it changed again in December 2015 and December 2017 to even harder, longer, and more detailed plans and formats. Filing Chapter 13 is complicated. Attorney fees in Chapter 13 are set by the court. Every attorney is paid the same fee. It costs you nothing extra to use the best-rated attorney. We have already helped thousands of others, let us help you, too.

If you need help with your Chapter 13 bankruptcy filing, you are in the right place. Contact my office right away for more information. Nick C. Thompson, Attorney: 502-625-0905

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