Chapter 13 bankruptcy is very similar to Chapter 7 bankruptcy, but it is meant more for individuals who are earning a wage, but are having a hard time making ends meet.
Unlike Chapter 7 bankruptcy, Chapter 13 bankruptcy allows a debtor to repay his/her debts over a period of time. Typically, the payments are made over a period of three years, but can be extended up to five years by the courts. Some call Chapter 13 bankruptcy the wage earner’s bankruptcy plan.
At the Louisville bankruptcy law firm of Denise Brown's Legal Direction, our attorneys offer hope for those individuals who inquire about Chapter 13. We will take the stress out of your financial problem by helping you with your bankruptcy paperwork.
The payment amount is then determined by the court. A trustee is appointed to receive the consolidated monthly payments and distribute the monies to the creditors as he/she sees fit.
The laws surrounding Chapter 13 bankruptcy have undergone some important changes. Some of changes are rather complex. It is advisable for the debtor to work with an experienced bankruptcy attorney to ensure that a Chapter 13 bankruptcy best suits your needs.