As this blog has discussed on several previous occasions, many residents of Louisville, Kentucky, who find themselves in financial trouble may consider Chapter 13 bankruptcy as an option for debt relief. As has been explained, a Chapter 13 bankruptcy involves making and performing a repayment plan in which all or part of a debtor's disposable income goes to repay the person's creditors.
Although the figures had not been completely processed, the Federal Reserve Bank announced recently that the people of Louisville, Kentucky, along with their fellow Americans, are carrying around almost $13 trillion in consumer debt. This marks the 13th quarterly increase in this figure in a row and is also the highest number on record.
Filing for bankruptcy can be a difficult time for a Kentucky resident. Besides the stress of dealing with creditors and debt collectors, there is the fear of not being able to get through the legal process. Add to this that the individual needs to decide what kind of bankruptcy case to file, and it can be a traumatic experience for anyone. One thing that may help ease that stress is to know, ahead of time, what will be expected in a bankruptcy process.
Making the decision to file for bankruptcy is stressful. Deciding what type of bankruptcy to file can be equally as stressful. Not everyone is able to file for all forms of bankruptcy, and while some may wish to pursue Chapter 13 and some may want to take a different route, it's important to understand what qualifies a person for such an action.
The economic downturn that occurred in Kentucky and across the United States around 2008 hit many people quite hard. Lack of growth and a crash in certain markets led to loss of jobs for many, which led to depressed consumer spending, leading to more lay-offs in a negative feedback loop. Unfortunately, when this happened, many individuals found themselves unemployed and with poor job search prospects due to the lack of hiring that was happening.
Previous posts here have discussed some of the basic differences between filing a bankruptcy under Chapter 7 of the bankruptcy code and filing under Chapter 13. To refresh, Chapter 7 filings are often referred to as "liquidations," in which the debtor's property that is not exempt under the law is sold to pay off as much of the debt as possible. Chapter 13, on the other hand, is considered a "reorganization" and the debtor must have an income with which to submit a plan to pay back some portion of the debt in a three- or five-year time span.
Kentucky residents may be aware of the concept of Statutes of Limitations, also known as "SOLs," based upon common knowledge of criminal or civil legal concepts. In short, SOLs are restrictions that legislatures place on the time a person or the state has to pursue some legal action. The idea is that after a certain period of time, witnesses or evidence may no longer be available, and also that at some point the potential parties to an action need to have certainty that the matter is closed. Some people may be surprised to learn that SOLs may apply to certain bankruptcy cases as well.
For many Kentuckians, choosing between filing bankruptcy under Chapter 7 and Chapter 13 can be difficult. This post will examine the choice from a different perspective: the outcome of a Chapter 13 proceeding. In other words, what happens to a person's assets and debts when the Chapter 13 proceeding finally comes to an end with the entry of the order confirming the repayment plan?
Kentuckians who are contemplating filing a petition in bankruptcy have many questions about life after bankruptcy. One of the most pressing issues is the purchase of an automobile on credit. Contrary to the expectations of many people, a personal bankruptcy does not automatically foreclose the possibility of borrowing money to buy a car.