Additionally, paying off an expensive secured debt, like Louisville Bankruptcy Attorney a home or car, could also increase your monthly payments. This increase in disposable income could be used to complete your Chapter 13 plan faster or to pay off more of your creditors. General unsecured debt encompasses all debts other than priority and secured debt.

 

In both scenarios, the consumer is able to emerge from the bankruptcy filing with their “head above water”. Let’s take a deeper look at the similarities and differences between Chapter 7 and Chapter 13 Bankruptcy. Michael devotes his practice to assisting people with debt relief and bankruptcy matters. He will custom-tailor his efforts to each client’s unique situation. Whether filing for Chapter 7 or Chapter 13 bankruptcy, he can help you understand your options while determining the most effective method for becoming debt-free. Bankruptcy filings are generally deleted from your credit report 7 to 10 years after the filing date.

 

Property Deeds

 

First, you’ll need to take a credit counseling course from an approved provider. Bankruptcy will stay on your credit report for seven to 10 years, and it will likely cause your credit score to drop significantly. If you’re not planning on applying for any new credit during that time, it may not be a big deal.

 

The table below shows an example of what someone’s Chapter 13 monthly budget may look like during their case. Responsive and experienced attorneys dedicated to our clients in Owensboro and throughout Kentucky. If you’re working with an attorney, they’ll complete the forms based on the information and documents that they collect from you. If you’re filing without an attorney, you’ll have to complete the official forms yourself. In that case, you may be able to use Upsolve’s filing tool to complete your forms.

 

Meanwhile, many people and businesses choose against Chapter 11 due to the number of legal fees and how long the process is. This law firm website and legal marketing are managed by MileMark Media. Luckily, most bankruptcy filers are able to keep their homes when they file for bankruptcy. There are two situations in which filers may face the loss of their home after they declare bankruptcy.

 

You don’t have to use a cheap attorney who may not be qualified because money is tight. Before 2019, having the attorney do all the work pre-filing and paying attorney fees after the case was filed was considered unethical. This is because as soon as the case is filed the debt to the attorney for work done pre-filing is stayed and later discharged.

 

If you are interested in filing for Chapter 7 bankruptcy, or you want to learn more about which chapter of bankruptcy is right for you and your situation, call O’Bryan Law Offices. We can help you understand the advantages and disadvantages of a Chapter 7 filing and can help you file your petition for bankruptcy. By submitting, you agree the phone number you provided may be used to contact you by the law firm and its affiliates (including autodialed, pre-recorded calls or text messages). If you don’t want us to contact you, feel free to call our numbers. Louisville Lawyer List is is a local directory of attorneys in Louisville.

 

This extra income could lead to an increase in your monthly payments. If you wish to lower your monthly minimum payment, you must approach the bankruptcy court. Disposable income is money you have left to spend after subtracting your allowed bankruptcy expenses.

 

Will A Chapter 7 Bankruptcy Help Me Get Credit Card Debt Relief?

 

Failing to show that they have completed this course could risk a dismissal of the bankruptcy case. The first 341 creditors meeting will occur around days after filing. This meeting gives your creditors the opportunity to ask you questions about your finances and the bankruptcy documents you submitted. After the court has assigned a bankruptcy trustee to your case, you must send all of your documents to the trustee for them to review. They will likely request additional documents, which you also must provide. When requesting these documents, the trustee will likely send a letter either to you or your attorney.

 

This limit applies to those individuals who are currently supporting a different spouse or a child that is not involved in the support order. Those who are not supporting others may have up to 60% of their disposable earnings garnished. Additionally, they can increase the garnishment amount by 5% if you are behind by more than 12 weeks in payments. While student loans are often considered nondischargeable debts in both Chapter 7 and 13 bankruptcies, some exceptions can help discharge someone of their student loan debt. For example, if paying the loans is causing an individual undue hardship, then their debt may be discharged.

 

Only certain debts can be discharged in a Chapter 7 bankruptcy case. These are usually unsecured and secured debts deemed to be of less importance than other debts. Brian has also represented creditors pursuing derivative claims in bankruptcy. Brian edits and contributes to Creditors’ Sidebar, a legal blog focused on bankruptcy and creditors’ rights issues. Since 1988, I’ve been defending foreclosures and practicing bankruptcy cases. I’ve also won several student loan undue hardship discharges, which other attorneys claim is impossible.