By avoiding foreclosure with bankruptcy you have the Louisville Bankruptcy Attorney force of a federal court order behind you. Bankruptcy and foreclosure are two separate processes that can have a significant impact on your financial situation. Bankruptcy courts in Louisville, Kentucky, and Indiana require debtors to pay their ongoing mortgage payments directly to the mortgage lenders starting the day they file their Chapter 13. Debtors can only catch up and pay any arrearage to stop the foreclosure process through their Chapter 13 plans. If you wish to file a complaint on a federal level, you can report the debt collector to the Federal Trade Commission.
This extra income could lead to an increase in your monthly payments. If you wish to lower your monthly minimum payment, you must approach the bankruptcy court. Disposable income is money you have left to spend after subtracting your allowed bankruptcy expenses.
This allows them to keep their business up and running while working to repay their debts by other means aside from liquidating their business assets as a way to repay them. These documents are important because they help you, your lawyer, the bankruptcy trustee, and your creditors get a better picture of your current financial situation. These documents make it much easier to fill out your bankruptcy forms in a timely manner.
Keep in mind that only nonexempt assets may face liquidation in a Chapter 7 filing, regardless of the exemptions. Most people will be able to protect their essentials, such as their home, their car, and even tools of the trade. For those who are experiencing a temporary gap in income, perhaps due to a job loss, a divorce, an injury or an illness, it can be difficult to continue to make ends meet. By the time income is restored, late fees, higher interest rates and overdue payments may have snowballed to make it impossible to catch up.
⎆ Filing For Bankruptcy After Foreclosure
Waiting too long could prevent attorneys from being able to help you effectively. Let’s say you have fallen behind on your mortgage payments, but the foreclosure process has yet to officially start. The servicer of your mortgage can begin to charge fees during this time. Some examples of these fees include late fees and inspection fees.
Why You Shouldn’t Pay The Minimum Payment On Credit Card Debt
What’s more is that we will design a plan of action that is fully tailored to your income, finances, and assets. We focus on helping you achieve your financial goals rather than on making money like a debt consolidation loan might. In some cases, you may find that the path you wanted to take initially just won’t work for your situation. Below, we list other Kentucky debt relief options that are available to those who owe money. Those who are overwhelmed by their debt should avoid shady companies that don’t have their best interests at heart.
At Schwartz Bankruptcy Law Center, our lawyers understand that filing for Chapter 7 bankruptcy isn’t for everyone. We realize that some people would like to maintain their integrity by paying back their debts. If you believe this type of bankruptcy may be right for you, simply contact a dedicated Louisville Chapter 13 bankruptcy lawyer from Schwartz Bankruptcy Law Center today. In a Chapter 13 bankruptcy, you repay your creditors in full or in part over the course of three to five years under a repayment plan to achieve debt relief. A Chapter 13 repayment plan helps people, families, and even businesses to restructure their debt.
To get an idea of what your Chapter 13 monthly payments might be, start by calculating your income for the six months prior to filing bankruptcy. Then, pay your priority debtors and make payments toward the secured debts you want to keep during your bankruptcy filing. Cooley & Offill Law Firm is client-centered, offering resourceful and skilled legal services throughout Kentucky for 23 years.
First, you’ll need to take a credit counseling course from an approved provider. Bankruptcy will stay on your credit report for seven to 10 years, and it will likely cause your credit score to drop significantly. If you’re not planning on applying for any new credit during that time, it may not be a big deal.