Both secured creditors and unsecured creditors are motivated to work with the business owner by accepting lower loan repayments and reaching a Louisville Foreclosure Lawyer compromise. These creditors want to work and compromise with businesses in Chapter 11 because they can get better terms and more money than Chapter 7 bankruptcy cases. We strongly recommend scheduling a free consultation with a Kentucky or Indiana bankruptcy lawyer before you decide to file. At O’Bryan Law Offices, we can help you examine the facts of your situation and determine whether or not bankruptcy is the right choice for you. Each year Premier Bankruptcy Lawyers (PBL) researches and recommends leading bankruptcy lawyers across the United States. PBL lists only one attorney and firm in each city and inclusion to the guide is by invitation only.
This notice informs the parties that the court is preparing to grant your bankruptcy discharge. Repayment plans can be modified after confirmation under certain circumstances. For example, if the debtor loses their job, gets into a car accident, suffers a serious illness, or encounters another roadblock, this can justify a modification. Specifically, the Bankruptcy Code requires that the first 341 meeting occur no sooner than 21 days after filing and no later than 50 days after filing. It is during this meeting that the repayment plan will be discussed and proposed. Within 30 days of filing your Chapter 13 bankruptcy petition, you will make your first monthly payment for your payment plan.
However, it is actually more straightforward than many filers realize. In the following sections, we outline the major steps that Chapter 13 filers must complete before receiving their Chapter 13 discharge. A deficiency balance is the amount of money that you still owe on your mortgage after your home is sold at a foreclosure sale. In some states, lenders can sue you for this amount, which can be a significant financial burden. The Fair Debt Collection Practices Act specifically prohibits debt collectors from doing any of the following.
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We will review your finances and recommend some Kentucky debt relief programs that may help you. Lower interest rates mean more manageable monthly payments and an easier repayment process. Once you consolidate your debts, you won’t have to worry about multiple payment schedules anymore. Yes, Chapter 13 bankruptcy can halt foreclosure proceedings and provide an opportunity to save your home. When you file for Chapter 13, an automatic stay goes into effect, immediately stopping ongoing foreclosure actions. While in Chapter 13 bankruptcy, it’s possible to buy a car, but it typically requires court approval.
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Contact O’Bryan & O’Bryan to find out more about our bankruptcy law practice and how we can serve you. Around 14 days after you receive your discharge, the court will enter the final decree of the case. This decree officially closes the bankruptcy case and discharges the trustee from their responsibilities in the case. The bankruptcy filer must complete a debtor education course, also called a financial management course. After completion, they must submit the certificate of completion to the court within 45 days of the first 341 meeting.
Work often gets filed late or goes unfiled because you didn’t pay for it. Or you lose property because he won’t do the work or doesn’t know how to do it. Sometimes the case has to be filed twice, which allows him to earn that cheap fee twice. In Chapter 7 bankruptcy, deficiency balances are considered unsecured debt and can be discharged, meaning you will no longer be responsible for paying them.
Under Chapter 7, a trustee is appointed by the court to collect and sell your nonexempt assets and distribute the proceeds to your creditors. You are allowed to exempt (keep) certain property, but most people who file for Chapter 7 have few, if any, nonexempt assets. Then you may have started looking at what options you have to relieve yourself of your debt. If you live in the United States, you have a few options to consider. They allow the consumer to either wipe out their existing obligations or repackage them into a payment plan that is repaid over a specified time frame.
However, as you can see with some practices, it only makes more work for the client and the attorney and opens you up to having the court look over your petition. Therefore, cheap low-cost attorney fees in Chapter 7 Bankruptcy are not as affordable as you might think. However, instead of costing a client about $1,538 to file for a single person and the filing fee, the cost is paid over a year is about $2,000 dollars for a zero-down bankruptcy. Next, eliminating the unsecured debt in Chapter 7 first then eliminates paying unsecured debt later in Chapter 13. Finally, Chapter 13 is often filed after Chapter 7 to save the home with no unsecured debt to repay.
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.
It’s no surprise that they want to know how long the process will take. In the following sections, we outline the full Chapter 13 timeline and walk you through the process of achieving lasting debt relief. During that time period, you will make payments to the bankruptcy trustee who will make payments to your creditors.
We recommend speaking with an experienced Kentucky bankruptcy lawyer to determine which bankruptcy chapter is right for you. Contact O’Bryan Law Offices and schedule a free consultation with our consumer bankruptcy attorneys. Observing these bankruptcy do’s and don’ts will help set you up to make the most of your right to debt relief under the Bankruptcy Code. At O’Bryan Law Offices, our attorneys fully understand how the bankruptcy laws apply to your situation and will keep you away from any of these pitfalls.
Chapter 7 bankruptcy, also known as liquidation bankruptcy, is the most common form of consumer (non-business) debtor bankruptcy. Chapter 7 will halt collections activity including lawsuits, garnishments and threatening phone calls. It will also help you to eliminate most, if not all, of your debt and give you a great chance of keeping your assets. Additionally, a Chapter 7 Bankruptcy may be resolved in a matter of months. While there are many benefits to filing a Chapter 7 Bankruptcy in Kentucky, there are certain considerations that may lead you to choosing another form of bankruptcy.
We strongly recommend speaking with an attorney about your case, as we can help you come up with a payment plan that works best for you. Generally, it involves a partial reduction of an individual’s unsecured debts, reduced debt interest rates, and extended payment terms. Many people appreciate the financial breathing room that Chapter 13 offers. You also keep your home and retirement assets, as well as vehicles and personal belongings in most cases. Our free tool has helped 16,185+ families file bankruptcy on their own.
This may provide individuals and businesses a new opportunity to reorganize their debts and make arrangements to pay all of a portion of the debts and save their business. Once Chapter 13 is successfully filed, almost all collection actions against the debtor are automatically put on hold. This “stay” may only be effective for a short time, but can be extremely beneficial to the debtor.
Our Louisville bankruptcy lawyers help individuals file for Chapter 7 or Chapter 13 bankruptcies. The two general differences between the types of filings are what happens to a filer’s assets and their debts. Let us be your advocate when it comes to saving your home, protecting your paycheck, and helping you obtain the debt relief that you need. If you’re looking for a compassionate bankruptcy lawyer in Louisville KY, then look no further.
