Using Chapter 13 To Protect Your Assets
While most people are familiar with Chapter 7 bankruptcy, there are other legal options that can be used to reduce debt obligations. Chapter 13 bankruptcy is the chapter that allows debtors to restructure their debts into one small monthly payment that will last from three to five years. At the end of the payment period, the remaining debts are discharged.
Chapter 13 bankruptcy can help you prevent a foreclosure, pay back taxes, stop interest from accruing or keep valuable nonexempt property. In many cases, Chapter 13 bankruptcy is used for debtors who wish to keep their secured assets.
If you want to make up your overdue payments, schedule a consultation with our bankruptcy lawyer, Dwight Burton. Attorney Burton has advised countless Bowling Green residents on their bankruptcy options, and he can use his legal experience to determine the best strategy for you.
Navigating The Chapter 13 Bankruptcy Process
Navigating the bankruptcy process can be difficult if you do not have the appropriate legal experience. If you fail to file the appropriate documents or supply the correct information, it can delay or stop proceedings and prevent you from moving forward.
Your financial future matters to us, which is why we are sharing these Chapter 13 bankruptcy steps with you:
- Before you file for bankruptcy, you will have to go through credit counseling with an agency that is approved by the United States Trustee Program.
- In order to file for Chapter 13 bankruptcy in Kentucky, you must prove that you have a regular source of income and disposable income.
- After paying the filing fee, you will need to fill out the paperwork and discuss information regarding your debts. The Chapter 13 plan will require you to pay specific debts in full, which are called “priority debts.” Your plan must also include regular payments on secured debts to show that your income is going toward the repayment of these debts.
- After you complete the Chapter 13 bankruptcy debt repayment plan, your eligible remaining debts can be discharged. Before you can receive a discharge, you will need to show that you are current on your divorce order payment obligations.
This chapter of the bankruptcy code allows debtors to eliminate their heavy debt burden while slowly paying it back and keeping nonexempt assets.
Wondering Whether You Qualify For Chapter 13 Bankruptcy? Get Answers Today.
If you are in need of legal counsel regarding your bankruptcy case, contact the Law Offices of Dwight Burton, PLLC, online or over the phone at 270-495-0074 to discuss your case with our Bowling Green attorney.