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Chapter 13 Archives

Choosing between Chapter 7 and Chapter 13 bankruptcy

Kentucky residents filing for bankruptcy tend to worry the most about the idea of losing their homes during the process. Especially for those who file for Chapter 7 proceedings, where assets are sold off in order to pay off debts, the idea of losing one's most prized possessions -- like the family home -- could be a serious deterrent.

How Chapter 13 bankruptcy works

Financial difficulties can happen to anyone. Job loss, a medical crisis or even accidental mismanagement of income can cause a person financial hardship. For anyone in Louisville and beyond, filing a Chapter 13 bankruptcy case can give a person time to regroup and create a plan to pay off creditors and gain a fresh financial start.

What are the best benefits of Chapter 13 bankruptcy?

There are a lot of reasons why a Kentucky resident would choose Chapter 13 bankruptcy over Chapter 7 bankruptcy. However, some may question what the advantages are, especially considering that a Chapter 13 repayment plan could represent a three to five year commitment. This article will discuss the primary benefits of Chapter 13 bankruptcy in detail.

What if I miss a Chapter 13 repayment plan payment?

Before entering Chapter 13 bankruptcy proceedings, debtors should consider whether they have a stable enough income in order to meet the requirements of paying a specific amount of money in regular installments for three to five years. That is because, if the payments cannot be made in a timely fashion, then it could render the bankruptcy process invalid and the bankruptcy could ultimately be dismissed.

What are the requirements for Chapter 13 bankruptcy?

One of the primary advantages of Chapter 13 bankruptcy over Chapter 7 is that you don't have to liquidate any of your assets. With Chapter 13, you're given the opportunity to keep your property in exchange for committing to a repayment plan, which will last for three or five years depending what the court decides.

How payment plans work in a Chapter 13 bankruptcy

For anyone considering bankruptcy as a form of debt relief, an important early question is whether to choose Chapter 7 "liquidation" bankruptcy or Chapter 13 "payment plan" bankruptcy. While Chapter 7 discharges many debts completely, it may still leave some of your more valuable forms of property, such as a house, or a car, open to the possibility of being sold off in a trustee’s sale as a means of paying creditor claims.

Supreme Court ruling may affect ability to appeal in a bankruptcy

Kentucky residents who are facing overwhelming debt may be interested in one legal limitation that consumers face when seeking a Chapter 13 bankruptcy. A decision from the nation's highest court has clarified when a person has the ability to appeal the bankruptcy court's rulings.

Debts that can't be discharged in Chapter 13 bankruptcy

People in Kentucky who file for Chapter 13 bankruptcy protection may be able to have many of their unsecured debts discharged upon the successful completion of the process. However, there are a few kinds of obligations that are not eligible for discharge under Chapter 13 bankruptcy. Other kinds of debts may not be impossible to discharge, but it could be more difficult under this form of consumer debt relief.

How Chapter 13 bankruptcy affects a mortgage

Kentucky homeowners who are having financial difficulties may be wondering how filing for Chapter 13 bankruptcy affects their mortgage. When this specific type of bankruptcy is filed, the mortgage lender typically wants to prevent the foreclosure process as much as the homeowner.

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