Interestingly, Chapter 13 is sometimes less expensive than Chapter 7. For instance, Chapter 7 does not have to repay the priority and secured creditors. But, every Chapter 13 bankruptcy plan must repay the priority claims and secured arrearages. Since the interest and penalties are repaid partly for these unsecured debts, Chapter 13 might be less…
Welcome to our post to help you learn about the Small Business Reorganization Act of 2019 (SBRA). We filed a Kentucky SBRA Chapter 11 Bankruptcy case in Louisville hours after the act went into effect. Under the SBRA, filing is supposed to be more simple than a normal Chapter 11. But SBRA cases move very…
One of the pet peeves for our local Bankruptcy Judge Lloyd has is when debtors fail to reduce cable tv telecommunications costs in their budget. In fact, Judge Lloyd rarely approves telecommunications expenses over 5% of household income in Chapter 13 cases. To do so requires an affidavit of necessity and often a hearing on…
Your Chapter 13 plan must calculate Chapter 13 plan payments that pay the secured and priority debts in full. The unsecured debts may be paid as low as 0%. If you properly include all your reasonable and necessary expenses this percentage is often well below 50%. We include items like 401k retirement expenses if you…