If you struggle every month to pay off your debts, then it may be valuable for you to consider a bankruptcy filing. This may just be the only way to renegotiate your repayment terms in a way that works best for your current financial situation. Read on to discover how you can negotiate better repayment terms and how a seasoned Louisville, Kentucky Chapter 13 bankruptcy lawyer at Schwartz Bankruptcy Law Center can help you through this.

What is Chapter 13 bankruptcy?

First of all, Chapter 13 bankruptcy, commonly referred to as reorganization bankruptcy, is used to take your debts and reorganize them into a repayment plan.

Chapter 13 bankruptcy is geared towards individuals who have assets, value to their home, and/or have a higher average income than other families residing in their Kentucky county. More specifically, it is best suited for individuals who are facing foreclosure on their home, facing the loss of their automobiles, experiencing long-term unemployment, or experiencing cash flow problems.

Can I renegotiate repayment terms with Chapter 13 bankruptcy?

A Chapter 13 bankruptcy repayment plan is supposed to last you three to five years, during which you will make payments to your bankruptcy trustee who will make payments to your creditors. All the while, the Kentucky bankruptcy court will put a stop to various forms of credit harassment and will allow you to keep your home and car.

With that being said, you will be able to spread out your repayment plan in a manageable three- to five-year span as opposed to trying to keep up with your current monthly payment rate. This renegotiating of your repayment terms allows you to pay only the amount of debt you can afford to pay based on your income, living expenses, and overall budget. All the while, you will be relieved from the worry that you may lose your home, car, or any other valuable asset in the process. Overall, the hope is that you will emerge debt free at the end of your bankruptcy.

What debts do I need to repay in Chapter 13 bankruptcy?

Depending on your circumstances, you may be required to pay back anywhere from 10 percent to 100 percent of your debt in your Chapter 13 bankruptcy. That is, you will have to include all of your unsecured debts in your repayment terms, such as the following:

  • Any personal loan debt.
  • Any credit card debt.
  • Any car loans.
  • Any student loans.
  • Any overdue medical bills.
  • Any overdue child support payments.
  • Any overdue income taxes.
  • Any compensation ordered by the Kentucky criminal court.
  • Any civil judgment ordered by the Kentucky court.
  • Any debts incurred by fraud or money laundering.

For more information, reach out to a competent Louisville, Kentucky consumer bankruptcy lawyer today. We look forward to hearing from you.