KENTUCKY CHAPTER 13 BANKRUPTCY BASICS

BANKRUPTCY CHAPTERS

The chapters a debtor may use to file bankruptcy can be found in

the U.S. Bankruptcy Code

An individual debtor may file a chapter 7, 11, 12, or 13 bankruptcy

Most individual debtors file either a chapter 7 or chapter 13

Chapter 13 provides the debtor with an extended period of time

(usually 3-5 years) to pay off debts

CHAPTER 13 PROCESS

Typical steps in a chapter 13 bankruptcy include:

Filing the petition

Court issues an automatic stay

Debtor and attorney develop a repayment plan

Meeting of creditors

Debtors adheres to the repayment plan

Bankruptcy is discharged

ASSETS IN A CHAPTER 13

BANKRUPTCY

With few exceptions, debtors are able to keep their

assets in a chapter 13 bankruptcy as they become part of the

repayment plan

This includes your home, vehicle and other assets

If your home is in foreclosure, bankruptcy can halt the process

YOUR CREDIT AND

BANKRUPTCY

Chances are your credit is already suffering

Your credit score will go down when you file but that is only temporary

Your credit score may begin to rebound shortly after filing

Chapter 13 remains on your credit report for 7 years

During the repayment period you can re-build your credit because payments are

made on time

Upon discharge you have eliminated debts, created a history of on-time

payments, and you have a much better debt to income ratio

Learn More About Chapter 13 Bankruptcy in Kentucky

Click to visit:

www.mmslawonline.com