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Is Chapter 13 bankruptcy the right pick for me?

Kentucky residents like you who are filing for bankruptcy will have two major options to choose from. One is Chapter 13, and one is Chapter 7. Lonneman & McMahan, PLLC, is here to help provide you with the benefits and drawbacks of each type so that you can choose which fits you best.

Chapter 13 bankruptcy is considered the better option for people who have assets and can still manage payment plans. This contrasts Chapter 7, which involves the liquidation of your assets in exchange for the erasure of most of your debts.

In order to qualify for Chapter 13 bankruptcy, your assets must be high enough to be able to form a monthly payment plan. You will pay according to this plan for anywhere from 3 to 5 years. At the end, any debt that you have left will be discharged. The monthly plan itself will be tailored to your own specific financial situation. You will be able to work with your debt amount, the assets you have, and your income in order to craft something that is reasonably achievable.

Generally speaking, outside of people who have assets, this plan is also good if you are fighting foreclosure because you have fallen behind on mortgage payments.

If you're looking into filing for either Chapter 13 or Chapter 7 bankruptcy, take the time to check out our webpage, linked here. By comparing and contrasting the different benefits and drawbacks that each type has to offer, you will be able to narrow down your options and find one that truly suits what you're aiming for.

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