Ch 13 Eligibility Paducah, KY | Paducah, KY

How Do I Qualify for Chapter 13 Bankruptcy in Paducah, Kentucky

Chapter 13 Bankruptcy in Paducah, Kentucky

Understanding your Chapter 13 eligibility is quite challenging. Chapter 13 bankruptcy is otherwise known as the wage earner’s plan. It allows individuals with regular income to have a repayment plan to repay all or some of their debts. 

In this Chapter, the debtors will have to propose a comprehensive repayment plan to make the necessary installment payments to creditors, which can last for three to five years. Reading that would surely not give you the answer you need. That’s why, before making your big decision, it is crucial to talk to an experienced bankruptcy attorney.

Farmer & Wright PLLC has all the necessary skills that a bankruptcy attorney should have. In every bankruptcy case, no matter how complicated it is, our legal team always aims to provide the highest quality of legal services that you deserve. If you are considering filing for a bankruptcy petition, schedule a consultation now.

Why do I need a Bankruptcy Attorney in Kentucky?

chapter 13 eligibilityFiling a Chapter 13 case might be the solution for your insurmountable debt. There are many bankruptcy attorneys out there. It is true that filing for bankruptcy does not require you to have a lawyer, but an experienced bankruptcy lawyer can definitely make a significant change in your claim. Before hiring, take note of the following good characteristics of a bankruptcy lawyer:

  • Personalized Service – Filing for bankruptcy has to be personalized since every situation is unique. Don’t settle for a bankruptcy lawyer who provides the same type of service regardless of the situation. You deserve a lawyer who, after the initial consultation, will take time to strategize his services for your personal needs.
  • Proven Competence – You need to go over the website of your bankruptcy attorney to evaluate their competence and experience. You have to take into consideration reviews, feedback, and client testimonials. Choose a law firm that demonstrates its capacity to help individuals get out of debt.
  • Helps You Rebuild Credit – You should look for a bankruptcy lawyer who is dedicated, not just helping you with your current situation but also helping you rebuild your credit. This allows you to have a fresh start through the credit-rebuilding program. Some bankruptcy attorneys include this perk in every Chapter 13 filing.

If you are filing bankruptcy by yourself, there is a big chance that you will overlook the necessary aspects. As the bankruptcy code is naturally complex, keeping in mind these notable characteristics of a good bankruptcy lawyer will help you determine your next step. Farmer & Wright PLLC ticks all the boxes above and has already helped thousands of individuals in Kentucky who are dealing with unsecured debt. In every bankruptcy filing, a credit-rebuilding program is included. If you want to know your eligibility for Chapter 13 bankruptcy, contact us now for a consultation.

What is Chapter 13 Bankruptcy?

As mentioned, Chapter 13 bankruptcy allows a debtor to have a repayment plan of three to five years. If the debtor’s monthly income is less than the applicable state median, the plan will last for three years unless the bankruptcy court approves a longer period for certain causes. If the chapter 13 debtor’s current monthly income is higher than the state median, the plan must be for five years. 

Advantages of Chapter 13

Chapter 13 bankruptcy gives individuals numerous advantages over liquidation in Chapter 7. Essentially, Chapter 13 bankruptcy gives debtors a chance to save and protect their homes from foreclosure. This chapter allows debtors to prevent foreclosure proceedings and pay their delinquent mortgage over time. 

Another advantage of Chapter 13 bankruptcy is that it gives individuals the legal right to reschedule secured debt and carry them out over the entire period of the Chapter 13 bankruptcy plan. According to the bankruptcy code, Chapter 13 also protects third parties who may be liable alongside the debtor for consumer debts. In other words, this special provision can protect co-signers. 

Finally, chapter 13 bankruptcy serves as a consolidation loan within which an individual makes the plan to the bankruptcy trustee, who, in return, distributes the funds to the creditors. While under Chapter 13 protection, debtors will not have direct contact with the creditors.

Chapter 13 Eligibility

A Chapter 13 bankruptcy case can deal with many debt problems as long as you meet all the necessary requirements. To file for Chapter 13, you must have a regular wage or income. Chapter 13 bankruptcy works whether you are an employee of a company or self-employed. The amount of your regular income varies depending on your financial situation. 

In some situations, your household’s monthly income cannot suffice to cover all the amounts required to be settled. Even if you are eligible to file, if you cannot settle the required amounts, your Chapter 13 case will not prosper. There are certain situations where your personal circumstances change during the period of your Chapter 13 plan, and you may end up being able to settle the required payment. Your experienced bankruptcy lawyer may provide prudent legal advice to guide you step by step.

Determining Your Eligibility for Chapter 13 Bankruptcy

Under the state law, any person, regardless of whether they are operating in an unincorporated business or are self-employed, is eligible to file Chapter 13 bankruptcy so long as the combined total unsecured and secured debt do not exceed $2,750,000 at the moment of filing the petition. 11 USC § 109(e).

The bankruptcy law also makes it clear that a debtor cannot initiate a claim in any bankruptcy chapter if a bankruptcy was dismissed 180 days prior to the filing date. Particularly, when the cause of dismissal is the debtor’s intentional failure to appear before the United States bankruptcy court or comply with court orders, or when the case was wilfully dismissed after the creditors were granted relief by the bankruptcy court to recover the property on which they have liens. 

Credit Counseling

You cannot file the case unless you have completed an approved credit counseling course program. After the course, your certificate of completion must be submitted with your bankruptcy documents, including the bankruptcy forms. This credit counseling course may be held online, within the comfort of your home. Your bankruptcy attorney will assist you in providing a list of all approved agencies for the credit counseling course. As soon as you complete the course, a Credit Counseling Certificate with 180-day validity will be provided.

The repayment plan period in Chapter 13 always varies but typically ranges from 36 to 60 months. It is one of the requirements that you have a regular income to make the installment payments and satisfy the bankruptcy code’s provision. The amount will vary with each claim.

Call our Bankruptcy Attorney in Paducah, Kentucky Now!

The bankruptcy code and other relevant laws that govern Chapter 13 bankruptcy are intrinsically complicated. Other than complying with the necessary eligibility requirements, Chapter 13 also involves certain bankruptcy forms that you must submit accurately to the constituted authorities. In cases where you cannot determine whether you are eligible or not, if you are dealing with credit card debt, medical bills, or any other type of debt, contacting the best bankruptcy attorney is a wise decision.

Farmer & Wright PLLC is more than willing and ready to provide effective legal assistance. Your difficulties will be resolved as we answer all your queries and provide clarifications to guide you through the entire process. We personalize our service to make sure it suits your needs. Other than Bankruptcy, we can also help you with Personal Injury, Disability Claim, and Immigration. Schedule a consultation today!

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