24 YEARS EXPERIENCE IN CONSUMER BANKRUPTCY

DEBT REORGANIZATION

LICENSED IN KENTUCKY & INDIANA

MEMBER OF AMERICAN BANKRUPTCY INSTITUTE

Chapter 13 Bankruptcy in Kentucky and Indiana

CHAPTER 13--SAVE YOUR HOME AND AUTOMOBILES

Chapter 13 offers financially strapped individuals an opportunity to consolidate their debts and repay a portion of those debts through a plan of reorganization. Under Chapter 13, the debtor is legally protected from creditors and is allowed to keep his/her property while making payments to a Chapter 13 trustee, based upon his/her disposable income. Some debts must be paid in full while others may only be paid a percentage. Interest is often reduced or eliminated. The amount of the payment will depend on the type of debt and the debtor's ability to pay. Although Chapter 13 does not work for everyone, it does allow many individuals an opportunity to repay a portion of their debt in a more affordable fashion.

Chapter 13 also allows individuals to stop foreclosures and repossessions and gives individuals time to catch up on their mortgage payments.

Another advantage of Chapter 13 is that for quaulifing individuals there are no up front legal fees other than the court's filing fee. In addition, all legal fees are set by the court and paid through the Chapter 13 plan. The only out of pocket expense for initiating a Chapter 13 proceeding is the filing fee required by the court, which is currently $194.00.

Finally, certain types of debts which cannot be discharged in Chapter 7, such as taxes, can be discharged in Chapter 13.