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.

Just like Chapter 7 Bankruptcy, the debtor must do the following:

• File a petition with the courts
• Provide a full list of personal assets
• Provide a full list of liabilities
• Provide proof of income
• Provide a list of expenditures
• Provide a current financial statement including tax returns
• Complete a credit counseling class
• A debt repayment plan 

As part of the official bankruptcy forms, the following must also be provided:

• A listing of all creditors including the amount owed and the nature of the loan
• The source of the debtor’s income including amount and frequency of payments
• A full list of all of the debtor’s property
• A detailed list of monthly living expenses

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.

Chapter 13 bankruptcy offers some advantages over Chapter 7 bankruptcy:

• The opportunity for the debtor to save his/her home from foreclosure and repay past-due mortgages payments
• Allows individuals to extend payments of secured debts over the time of the Chapter 13 plan
• Ability to protect co-signers
• Ability to modify the plan if circumstances change

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. 

If you would like experienced Chapter 13 bankruptcy help, contact Denise Brown today at 502-587-0331, or complete our web form.