Not everyone qualifies for Chapter 7 bankruptcy to eliminate their personal debts. Not everyone should. Like many people, perhaps you could handle your debts if you could just restructure a monthly payment plan that allows you to pay one affordable monthly payment to your creditors.
By filing for Chapter 13 bankruptcy, you will be able to retain your assets while you pay off as much of your debt as you can afford. At the Covington, Kentucky, law offices of Rauf & Smith, we can help you get the debt relief you deserve. Contact Rauf & Smith at 859-474-1130 or fill out our contact form to schedule a free opportunity to discuss your personal debt and tax debt relief needs.
Stop Garnishment, Stop Foreclosure and Stop Collections Calls With the Help of a Renton and Redmond Area Lawyer
Chapter 13 bankruptcy may be the best debt relief option for you. By filing, you may be able to:
- Eliminate some credit card debt while restructuring it for lower monthly payments
- Keep your house and car
- Include tax debt and student loans in the restructured plan
- Strip off second mortgages
- Negotiate lower payments for certain loans
Chapter 13 Repayment Plan
Chapter 13 bankruptcy payment plans generally last between three and five years. During that time, you will make payments to your creditors based on what you can afford to pay. When the previously determined length of the plan is completed, your remaining debt will be discharged.
The amount of the payments you make to your creditors will be determined by a federal Means Test. The Means Test may determine your disposable income at the end of each month. This is the amount of money you have left over, after paying your bills and taking care of your daily expenses, as based on standards set up by the bankruptcy court. This disposable income will often constitute your payments to creditors.
Why file for chapter 13 bankruptcy?
As soon as you file for Chapter 13 bankruptcy, you will stop wage garnishment and harassing phone calls from creditors. As previously mentioned, you can retain all your assets, including your house and your car, in most cases. By entering a plan to repay your creditors, you will begin to rebuild your credit as well. When the process is over your debt will be completely discharged.
Credit Counseling in Kentucky
If you are going to pursue personal bankruptcy, you have to undergo credit counseling. This federally mandated requirement will help you understand what you can do to rebuild your credit, avoid future debt and plan for the future. We can help you discharge your debt and move toward a debt-free future.
We Represent Clients Throughout the Cincinnati Area
At the Covington, Kentucky, law offices of Rauf & Smith, we understand how stressful it can be to consider bankruptcy as an option for paying off your debt. That is why you will meet directly with your attorney throughout the bankruptcy process. Contact us today for a free initial consultation. Please call 859-474-1130 or fill out our contact form to set up a time to speak with an experienced lawyer.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.