The Chapter 13 bankruptcy option is designated for individuals who earn an above-average salary with high-value assets and significant value to their home, but are still struggling with paying off certain debts. If this sounds like you, then follow along to find out the steps for filing and how a proficient Louisville, Kentucky Chapter 13 bankruptcy lawyer at Schwartz Bankruptcy Law Center can walk you through each one.

What are the steps for filing for Chapter 13 bankruptcy?

There are steps that every Chapter 13 bankruptcy petition must abide by, and they read as follows:

  1. Schedule an appointment for a credit counseling course, within 180 days of your Chapter 13 bankruptcy filing.
  2. File your Chapter 13 bankruptcy petition, with all the necessary documentation and fees, along with your credit counseling course certificate.
  3. Attend your scheduled 341 meeting of creditors, where you must confirm your identification and answer questions from your trustee and creditors in attendance.
  4. Draft a Chapter 13 repayment plan with your lawyer, and begin paying back creditors while waiting for the Kentucky bankruptcy court’s approval of this proposed plan.
  5. Accept changes to your proposed Chapter 13 repayment plan as directed, all while continuing to pay back creditors for three to five years.
  6. Complete your confirmed Chapter 13 repayment plan within three to five years, then ask for your eligible debts to be discharged.
  7. Schedule an appointment for a debtor’s education course, so that you may avoid starting this process all over.

What are the downsides to Chapter 13 bankruptcy proceedings?

Chapter 13 bankruptcy may be advantageous if you wish to protect your assets as you work your way back toward financial stability. However, before you put yourself through these extensive proceedings, you must also consider its downsides. They read as follows:

  • Chapter 13 bankruptcy may make it difficult to obtain loans in the future.
  • Chapter 13 bankruptcy may remain on your credit report for up to 10 years.
  • Chapter 13 bankruptcy may make it difficult to get approved for credit cards in the future.
  • Chapter 13 bankruptcy may not relieve you of your domestic support obligations (i.e., alimony and child support).

You may rest easier knowing that your lawyer may help you conclude whether or not a Chapter 13 bankruptcy filing should be your next move.

What happens if I go through these bankruptcy proceedings without legal representation?

Along with advising you on whether you should file for Chapter 13 bankruptcy in the first place, your lawyer may help you in many other ways. For example, they may help you avoid accidentally participating in fraudulent activity during your proceedings. In addition, they may help prohibit any credits from fraudulently conducting collection activities during your proceedings. This is why we recommend that obtaining legal representation be your first step.

When it comes to your Chapter 13 bankruptcy proceedings, there is no one other than a talented Louisville, Kentucky consumer bankruptcy lawyer to have in your corner. So please get in touch with us at Schwartz Bankruptcy Law Center today.