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chapter 13 bankruptcy Archives

The goal of Chapter 13 is an affordable repayment plan

As previous posts here have discussed, Chapter 13 bankruptcy is distinct in that a Louisville family who chooses this option will be expected to repay all or part of their debts. More specifically, the family will get to hang on to all of their property, but they will need to make monthly payments to a court officer, called a "trustee," for anywhere between three and five years. At the end of the day, the family will be expected to pay at least 10 percent of their debts and may need to pay up to all of their debts off.

Why people might consider Chapter 13 bankruptcy as an option

Although many people might want to compare a Chapter 13 repayment plan with the more popular Chapter 7 bankruptcy, other residents of Louisville, Kentucky might also wonder whether it is advantageous to file bankruptcy at all, especially if they are being forced to file a Chapter 13 because their income keeps them from filing Chapter 7.

How we try to help our clients save money in Chapter 13

A recent post on this blog talked about how Louisville, Kentucky, residents might want to explore the using a Chapter 13 bankruptcy to "strip off" liens from their property, such as a second or third mortgage they took out in exchange for a home equity loan.

How can a Chapter 13 help with second mortgages?

Many people in Louisville, Kentucky, usually in an effort to manage their finances, take out a second or even a third mortgage on their home. This works well so long as the family has a steady income and no other financial problems. However, in the midst of financial problems, a family can get behind in their second mortgage payments.

Chapter 13 bankruptcy offers advantages

In many cases, a Louisville family may file a Chapter 13 bankruptcy, which involves repaying creditors all or part of the family's debts over the course of 3 to 5 years, simply because they make too much income to qualify for a personal bankruptcy under Chapter 7. In other cases, people might sense a moral obligation to repay their debts as best as possible, even though they see the financial advantages to filing a Chapter 13.

We help people file Chapter 13 for many reasons

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.

Average household debt soars to new heights

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.

What are the duties of a Chapter 13 bankruptcy filer?

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.

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