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Chapter 13 Bankruptcy Benefits in Louisville Kentucky

Chapter 13 Bankruptcy Benefits in Louisville Kentucky

A Chapter 13 Bankruptcy does everything 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 or car gets caught up over time. In addition, filing a Chapter 13 bankruptcy is appropriate if you don’t yet qualify for Chapter 7. You can only file one Chapter 7 every 8 years so if it has not been 8 years Chapter 13 is often your only choice. If this sounds like your situation, I invite you to continue reading to learn what you need to know about some of the Chapter 13 Bankruptcy benefits.

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 some of the possible benefits you may expect with Chapter 13.

Chapter 13 Bankruptcy Sets up Private Student loans to be discharged

More Chapter 13 Bankruptcy Benefits

Still More Chapter 13 Bankruptcy Benefits

⎆ The type of debts, assets and disposable income control your payments in Chapter 13.

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

  1. In Chapter 13 the plan payments must repay priority debts such as income taxes which are less than 3 years old.
  2. A Chapter 13 also has to repay and catch up with secured creditors unless the property is surrendered.
  3. A Chapter 13 must also repay what Chapter 7 would have repaid. So if you would have lost a $100,000 auto in Chapter 7, a Chapter 13 could keep the auto but you would have to repay $96,000 dollars. 100,000 – your 4,000 allowed exemption for an auto = 96,000.
  4. Again a Chapter 13 has to repay the disposable income after reasonable and necessary expenses are paid.

⎆ One of the Chapter 13 Bankruptcy Benefits is you get the time you need to get back on track.

The cause of bankruptcy is sometimes a temporary event. Bankruptcy cases are often due to divorce, disability, death in the family, or job loss. However, often, all you need is time to recover. In Chapter 13, you deal with your debts and put your finances back in order over time. And, that is exactly what Chapter 13 bankruptcy provides – time without the creditor harassment. 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 much longer in Chapter 13 than in Chapter 7. 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— even a 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 502-625-0905.

Half the attorneys who prepared 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 2005 have failed. Bankruptcy is not an area of the law where you can file a sloppy petition. You need someone who has the experience and qualifications. Too often attorneys lack the accounting and legal background to take on the banks.

After 2005 the Bankruptcy code changed again in December 2015 and December 2017 to even harder, longer, and more requirements for details in the plans and formats. Filing Chapter 13 comes with complications. In most cases, every attorney receives the same fee for Chapter 13 which is set by the court. Therefore, it costs you nothing extra to use the best attorney. Join the thousands of other happy clients and let us help you.

Resources for Bankruptcy

Louisville Kentucky Bankruptcy Forms

Avoiding Foreclosure with Bankruptcy

Benefits of Chapter 7

Early Discharge for Chapter 13 Bankruptcy

Retirement Benefits & 401k in Bankruptcy

Including Income, Assets, Debts, and Expenses in a Bankruptcy

If you are thinking about filing bankruptcy, don’t delay because timing is crucial. I am here to help you. So, contact my office right away to start the conversation. Nick C. Thompson, Bankruptcy Lawyer: 502-625-0905.

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