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.

The goal in any Chapter 13 bankruptcy filing is for the family to be able to make their monthly payments as agreed throughout the entire time of the Chapter 13 case. When that happens, the family will receive a discharge from all other outstanding debts and will get the fresh financial start bankruptcy promises, all the while being able to keep their property and suffer less damage to their credit score and overall financial standing.

Getting to an affordable monthly payment plan, however, is not always an easy thing. In addition to knowing one’s own budget constraints, a family may get pushback either from the trustee or from a creditor to pay more each month. In some cases, the amount of the monthly payment may be tightly regulated by strict mathematical guidelines.

Our law office understands that getting an affordable payment plan that will also satisfy legal requirements is critical to a Louisville family’s financial future when it comes to Chapter 13 bankruptcy. With our experience in Chapter 13 bankruptcies, we seek to help our clients effectively assess how much they can realistically afford each month and work hard to help them achieve their goals.