Below, we list three common scenarios Louisville Bankruptcy Lawyer that may cause an increase in your monthly Chapter 13 payments. The goal for every bankrupt person or business enduring Chapter 13 is to repay all disposable income through an applicable commitment period. This applicable commitment period depends on the bankrupt person’s average monthly income. This period will only be three years if their income falls under the state median, or it will be five years if their income exceeds the state median.
Kentucky Has One Of The Highest Rates Of Delinquent Debt In The Country
At Hodge & Smither, we offer free consultations and can provide payment plans so that our clients can get much needed counsel and advocacy in the situations where they need it most. For those considering bankruptcy, it’s important to be aware of the local resources that can support you through this process. The Louisville Metro Office of Resilience and Community Services offers various programs to assist residents facing financial difficulties. Additionally, the Kentucky Court of Justice provides valuable information on bankruptcy filings and legal proceedings.
Working with a bankruptcy attorney will ensure that you correctly fill out and file all necessary paperwork, meet important deadlines, and avoid certain bankruptcy mistakes. They will also be well-acquainted with both federal law and Kentucky law when it comes to filing bankruptcy. One of the biggest benefits of bankruptcy is the ability to have your debts discharged. Unfortunately, there are some disadvantages to filing for bankruptcy. It allows you to retain all of your assets while repaying all or a portion of what you owe to your creditors over a 3 to 5 year period. In many cases, you will only be repaying your unsecured creditors a small percentage of the total debt.
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We are here to help you navigate this challenging time with confidence and clarity. With the help of our knowledgeable and experienced lawyers, you can take the necessary steps to get back on your feet again. At Hirsch Law, we believe that educating prospective clients is the foundation for a successful bankruptcy filing. Click on the questions below to learn how bankruptcy can protect your home, car, wages, and more. If you’re in desperate need of debt relief, and are considering bankruptcy, you’ve come to the right place.
Before submitting your bankruptcy petition to the bankruptcy court, there are certain steps you and your attorney must take. You will need the certificate of completion in order to begin your bankruptcy case. To give the client a low price, you can always cut corners and do less work.
These are most common when the creditor’s claim is supported by an interest in collateral. We can negotiate with the creditor to protect your interests in these situations. In Kentucky, you can use certain wage garnishment exemptions to your advantage. They keep your creditors from taking more than a certain acceptable amount from your wages.
In other words, it is an amount equal to a debtor’s property value that’s unprotected by exemptions. In order to file for Chapter 13 bankruptcy, you’ll need to fill out a form that will help determine your disposable monthly income. The amount of money left over after deducting a debtor’s monthly living expenses is the number that should be paid each month towards their unsecured debts and non-priority debts. Lastly, add a payment to your unsecured creditors that equals what you would pay them in a Chapter 7 bankruptcy. The total amount that you end up with is your minimum plan payment for each month.
For example, many people are led to believe that if they file for bankruptcy, they will wreck their credit permanently and may not be able to secure credit after filing. Many others believe that they’ll lose their home if they file for bankruptcy. In fact, filing for bankruptcy, for many people, is the only surefire way for them to actually keep their home in the face of financial adversity. Your ability to obtain financing might be more challenging due to the bankruptcy, potentially resulting in higher interest rates or stricter terms. Filing for Chapter 13 bankruptcy might enable you to get a repossessed car back by including it in your repayment plan. If your car was repossessed before filing, Chapter 13 allows you to catch up on missed payments and potentially retrieve the vehicle.
Therefore, debt settlement isn’t always a bad idea, nor is it always a good idea. It’s up to you and your attorney to determine the best solution for your specific situation. For each option, there are almost always at least a few downsides.
Once in a while, you might hear from a creditor by mistake, but giving them your case number and our name will generally make them go away. Creditors who continue to pursue collections or harassment are violating the automatic stay and can be punished in court. Even if you’re aware of the debt you owe, make the creditor prove the debt to you. Also, sometimes a third party company may buy the debt without receiving proof of it.