Louisville Chapter 13 Bankruptcy Attorney

LOUISVILLE BANKRUPTCY ATTORNEY

Filing Bankruptcy Chapter 13

Since the Bankruptcy Code amendments came into effect in 2005, many people who might otherwise have filed for Chapter 7 protection have instead filed for relief under Chapter 13. To qualify for Chapter 7 relief today, your gross household income must be no greater than the median in your home state. Anyone over the median will need to file for relief under Chapter 13. Contact an experienced Chapter 13 Bankruptcy Attorney at O’Bryan Law Offices to learn more about how we can help!

How a Chapter 13 Bankruptcy Lawyer Can Help

When you have significant assets or own a small business but have accumulated insurmountable debt, Chapter 13 may provide the relief you need.

O’Bryan Law Offices has assisted the individuals and families of Kentuckiana for the past 30 years, with our lawyers bringing a combined 50 years of service to the firm. As a family-based law firm, we utilize a collaborative, team-oriented approach. Our attorneys will guide you through the process of considering, filing for and moving forward from Chapter 13.

Throughout the three to five years of repaying your debts, we can provide guidance with any questions or concerns that arise. When you successfully complete your payments, we can assist if your credit report is inaccurate or if you need guidance on how to restore your credit to a healthy position.

Chapter 13 FAQs

A Chapter 13 filing is the best choice for people who have income and want to protect their homes and other assets. This may also be the right choice for a small business owner, rather than a Chapter 11 business bankruptcy. For some however, a Chapter 7 bankruptcy is best. 

In  Chapter 13, you agree to a debt repayment plan that usually involves a partial reduction in your non-secured debts, reduced interest rates on your secured debts, and extended payments terms. This can provide you with the financial breathing room you need to make a financial recovery. You can keep your house and your retirement assets, and in most cases your vehicles and other personal property.

Chapter 13 is a reorganization plan to assist individuals and families as well as small business owners in restructuring their debt in order to pay their creditors back in full or in part. If debt collection pressure or the prospect of a home mortgage foreclosure has you thinking about bankruptcy as a possible solution, contact one of our experienced attorneys at O’Bryan Law Offices in Louisville, Frankfort or New Albany. We have helped thousands of people restructure their debt through the filing of a Chapter 13 bankruptcy.

Contact an experienced bankruptcy attorney to determine your best option.

A Chapter 13 will stay on the consumer's credit report for 7 years from the filing date. 

A Chapter 13 allows someone to keep his or her property and pay debts over time--typically 3 to 5 years.

If you filed a Chapter 13 Bankruptcy and want to file another Chapter 13, you must wait 2 years. If you filed a Chapter 7 Bankruptcy and want to file a Chapter 13, the time period is 4 years.

There are many differences, but the most obvious one has to do with debt repayment. In a basic Chapter 7 case, the debtor files a petition and schedules of assets and debts, attends a meeting with the trustee, turns over non-exempt assets if any, waits to see if anyone objects to discharge, and walks away from most unsecured debt immediately.

Chapter 13 debtors have to repay a portion of their unsecured debts in monthly installments over a period of three to five years. This isn’t as bad as it sounds. Most Chapter 13 plans in Kentucky and Indiana pay about 10 cents on the dollar to unsecured creditors.

The most significant benefit of Chapter 13 consumer bankruptcy is the debtor’s ability to hold on to nonexempt assets that would be subject to liquidation in a Chapter 7 case. At the completion of the repayment plan, the debtor gets a discharge on the unpaid portion of the claims.

Chapter 13 debtors can cure mortgage defaults while paying off the plan

Our experience and focus on bankruptcy law allows us to design Chapter 13 plans with your specific needs and circumstances in mind. We can use the plan to cure defaults on mortgages, car payments, and other secured claims. The plan can also extend the payment periods for nondischargeable debts like recent taxes or student loans. We analyze your cash flow and the value of your nonexempt assets to find practical ways to protect your home and possessions, all while meeting the minimal needs of your creditors on consumer debt.

Every case is different, and we work closely with all of our clients to make sure that you are getting the most out of your bankruptcy case. 

Chapter 13 bankruptcy allows you to restructure your debt by repaying certain debts over a three- to five-year period. Our lawyers will discuss whether Chapter 13 is right for you, including by evaluating:

  • Your income and cash flow
  • The makeup of your debt load, including both secured and unsecured debts
  • Any significant assets you wish to protect, including your home, car and more
  • Your ability to repay debt while financially recovering

The main benefits of Chapter 13 are allowing you to receive some much-needed breathing room by extending payment deadlines and reducing overall amounts owed, as well as allowing you to hold on to some of your valuable possessions. Because being able to remain financially afloat while repaying your debts is critical to this, we will analyze whether this is possible for you.

Once we file your petition with the appropriate Kentucky or Indiana court, creditors will be forced to stop harassing you. In the days and months that follow this bankruptcy petition, the court will require forms and documents to move your case forward. We will provide these on your behalf and assist in fulfilling any other requirements.

Contact the Louisville Chapter 13 Bankruptcy Attorneys at O'Bryan Law Offices

Despite what you may have heard, debt relief through bankruptcy is still possible. The rules have changed somewhat, but with the help of O’Bryan Law Offices you can make a new financial start.

Call us at 502-400-4020 to arrange for a free, no-obligation consultation. An experienced Chapter 13 Bankruptcy attorney at our firm can evaluate your situation, review your options, and recommend the financial strategy that is right for you.