Bankruptcy Lawyer in Louisville Guides You Through Chapter 13 Debt Reorganization
Rescheduling your debt into a manageable payment plan
Sometimes all you need is a clear payment plan and the insights of a third party to make sure the plan is followed. Reorganization of debt helps many people manage their monthly bills while working toward a more stable financial future. Denise Brown’s Legal Direction helps Kentuckians restructure their debt in a way that works for their family’s needs and budget. This type of bankruptcy is available to consumers faced with the harsh reality of not being able to pay all that they owe as it becomes due.
Chapter 13 bankruptcy
One of the goals of the Bankruptcy Abuse and Consumer Protection Act was to have those who are able to pay some of their debt, even if that payment was not the full amount, do so. Chapter 13 bankruptcy reorganizes your debt into a repayment plan called the Chapter 13 plan. The plan sets forth which secured debts are going to be made on an ongoing basis, most likely what is owed on your home and cars, and then delineates what percentage of unsecured debt is to be repaid. Unsecured debt means that no piece of property or other collateral is contingent upon the loan. Credit cards and signature loans are examples of unsecured debt. Unlike your house payment, unsecured debt requires you to pledge nothing as collateral for repayment. The basic procedure of a Chapter 13 bankruptcy is:
- Create a plan of repayment.
- Submit the plan to the court for approval.
- Upon approval, make one payment per month to the Chapter 13 trustee.
- The trustee disburses a percentage of the payment received to unsecured creditors. You may also elect to have the trustee disburse payment to your secured creditors, such as your mortgage holder or car loan institution.
A Chapter 13 bankruptcy may last for up to 60 months, and upon successful completion of all 60 plan payments, the case is granted discharge and whatever remaining percent of debt has not been paid to unsecured creditors is eliminated. Secured debts, such as your mortgage, often last longer than the plan length, and upon discharge, you are responsible for their continued payment. For more information about the nature of a Chapter 13 bankruptcy filing, call an attorney experienced in handling these types of cases. Shorter plans are available, but your qualification for those plans depends on your income and family size at the time of filing. There are many other considerations that an experienced bankruptcy attorney like Denise Brown can explain to you.
Call to see if a Chapter 13 bankruptcy is right for you
Contact the office online or call 1.888.309.8985 or 502.587.0331 for an appointment. Denise Brown’s Legal Direction offers free initial consultations and provides accurate advice for your specific situation. Each case is unique and is given individualized attention.