Debt Relief Through a Chapter 13 Repayment Plan
Often called “wage earner” bankruptcy, Chapter 13 bankruptcy is good for people who have a steady source of income but may be overwhelmed by debt payment obligations, such as falling behind on mortgage payments. One of the most significant benefits of filing for Chapter 13 is that it halts foreclosure proceedings and offers you a chance to keep your family in your home. It removes the threat of upheaval and eliminates the need to find a different place to live.
Chapter 13 bankruptcy allows you to repay a portion of your debt via a court-approved repayment plan that includes reimbursing unsecured creditors with a sum determined to be equal to the value of the asset. A repayment plan can be created even if creditors disagree with it. Once you complete all necessary payments, the remainder of your outstanding eligible debts will be eliminated.
Why Choose Our Chapter 13 Lawyers in Lexington, KY?
Chapter 13 has to be filed correctly, and you need to come up with a repayment plan you can live with or your debts will not be discharged. Making mistakes can be costly, so you should look for a lawyer you trust and feel comfortable with, and who has the experience and track record necessary to make sure your bankruptcy is successful. Here are some reasons why we feel you should choose Bunch & Brock:
- We are experienced. We celebrated our fortieth anniversary as a law firm providing professional, quality legal advice in Central Kentucky. Attorney Thomas Bunch established the practice in 1976, and his son, Matthew Bunch, continues his legacy of helping people and businesses.
- You will work directly with a lawyer. When you hire Bunch & Brock, you will have a lawyer handling your case—not a paralegal or legal assistant.
- We offer personalized service to clients. We provide the same experience and resources as many large firms, without giving up individual attention.
- We are affordable. We know that the last thing you need is more debt you can’t handle, so we set up a fee schedule that works for you. By making sure everything is done correctly from the start, we can prevent you from making mistakes that can wind up costing you more in the long run.
- We are local. The majority of our staff hails from Lexington and Central Kentucky, so we know the problems of the people in our region. The relationships we’ve forged with clients and the community are the cornerstones of our practice.
- We are accessible. You will work with an attorney who will listen to your concerns, answer your questions, and develop a strategy to meet your goals. Your attorney will return your phone calls, reply to your e-mails, and keep you informed of all developments in your case.
How Our Chapter 13 Bankruptcy Lawyers Work for You
When you are in dire financial straits, time is of the essence, as you want to put an immediate end to litigation, wage garnishment and other forms of harassment. When you have Bunch & Brock on your side, we start working for you immediately. We will:
- Meet with you to evaluate your individual financial situation to determine if Chapter 13 is the right choice for you. We will assess your income, expenses, debts, and assets to ensure that you are eligible for Chapter 13 bankruptcy and to consider whether Chapter 7 bankruptcy or some other debt-relief option would be better.
- Create a repayment plan. Determine a plan based on your income, expenses, and the value of your non-exempt assets. The plan will outline how much you will pay each month to your creditors over a three- to five-year period.
- File all paperwork, forms, and documents. We will help you gather all essential financial records, fill out forms, and submit all paperwork to the bankruptcy court.
- Make sure you are protected from creditors. Once Chapter 13 is filed, an automatic stay goes into effect that prohibits creditors from harassing or taking collection actions against you. Our attorneys will ensure that creditors are in compliance and do not proceed with actions such as lawsuits, wage garnishments, repossessions, and foreclosures.
- Negotiate with creditors to modify terms or amounts of debt to help you meet the terms of your repayment plan.
- Represent you in court at hearings and meetings with trustees and other attorneys, including your confirmation hearing to have your repayment plan approved.
- Provide support during the repayment plan period. We will be there should any problems arise, such as if your financial situation changes and terms of the plan need to be modified.
- Help with plan completion and discharge. When you complete the Chapter 13 plan, we will be there to ensure that all paperwork is filed, your debts are discharged, and creditors comply with all terms and leave you alone.
Chapter 13 Attorneys in Kentucky Answer FAQs
When considering bankruptcy, you are bound to have questions and concerns. Many of these will be addressed at your initial consultation, but to get started, here are some answers to questions our Chapter 13 attorneys in Kentucky are often asked:
Should I file under Chapter 13 or Chapter 7?
The type of bankruptcy you should file depends on your circumstances. Chapter 7 is liquidation of assets, where a court-appointed Trustee sells all of your nonexempt property to pay creditors. It is for individuals and business owners who do not have enough disposable income (and assets) to qualify for Chapter 13. In contrast, Chapter 13 is a “reorganization” bankruptcy, which allows you to keep your property and use your income to allow creditors to collect at least a partial repayment. This enables you to reduce the balance on an upside-down home or car loan and even discharge a second or third mortgage lien against your house.
What debts are paid by a Chapter 13 plan?
The Chapter 13 plan may pay any and all debts of the debtor, including secured and unsecured debts, and even debts that are non-dischargeable, such as back taxes, student loans and spousal and child support.
How long does Chapter 13 bankruptcy stay on my credit record?
Chapter 13 bankruptcy is typically removed from your credit report seven years after the date you filed, and this is done automatically, but you can start rebuilding your credit before this time.
How do I choose which assets to keep in Chapter 13?
Choosing which assets to keep is partially your personal decision and partially determined by the courts. In Chapter 13, some property is considered “exempt” and other property is “non-exempt.” Exempt items are those meant to give you a fresh start and include property you’ll need to maintain a home and job, such as a qualified retirement account, household goods, and partial equity in a primary residence and vehicle.
How Is My Repayment Plan Calculated?
Several factors affect the repayment plan that will ultimately be approved by the courts, based on factors that include:
- your household income
- the property you own
- your monthly living expenses and the disposable income you have after expenses
- the amount of debt that you owe.
When you have Bunch & Brock working for you, rest assured that we will be there to answer your questions and provide guidance throughout the entire bankruptcy process.
Get Help from a Kentucky Chapter 13 Bankruptcy Attorney
When dealing with serious debt, conferring with an experienced Chapter 13 attorney is an important first step on the path toward financial stability. For more than three decades, Bunch & Brock in Lexington, Kentucky, has provided assistance to individuals and families overcome by financial problems, and we are here to help you. Our Chapter 13 attorney will assess your individual situation and make sure you understand all options; then we provide our recommendation for resolving your financial problems in a manner that achieves the greatest benefit.
Don’t let overwhelming financial burdens take the joy out of your life. To schedule a confidential appointment with a Bunch & Brock Chapter 13 attorney, please call 859-254-5522 today.
Client Testimonial
“Matt is great! He worked on my case and finally the case was fully dismissed!!! Matt is an exceptional strategist, very professional, and he responds to my emails very fast (sometimes in seconds, unbelieveable …). He files responses on time and communicates the case with me regularly which makes feel safe and comfortable.” – Leren Qian (Google Review)
Attorney Matthew Bunch
Matt handles complicated bankruptcies and debt restructuring in Chapters 11 and 13 for both individuals and companies. He has also negotiated with multiple creditors on behalf of his clients to avoid bankruptcy. Matt is the firm’s lead litigator and handles contract disputes, certain personal injury claims and general litigation. [ attorney bio ]
