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| Copyright The Law Office of Eric L. Crump, PLLC, 2007, All rights reserved THIS IS AN ADVERTISEMENT |
| THE LAW OFFICE OF ERIC L. CRUMP, PLLC ATTORNEY AND COUNSELOR AT LAW ____________________________________________________ |
| THIS IS AN ADVERTISEMENT |
| CHAPTER 13 BANKRUPTCY |
Chapter 13 bankruptcy is a debt adjustment procedure
for individuals with regular income, who have unsecured
debts under $269,250 and secured debts under
$807,750.
Starting the Bankruptcy
The debtor files a bankruptcy petition with schedule of
assets and liabilities and statement of financial affairs,
along with a Chapter 13 plan. The plan provides for
repayment of the debtor's debts over a 3-5 year period,
from the future earnings of the debtor. A trustee is
appointed to receive payments from the debtor and
disburse them to creditors. The debtor remains in
possession of all of his property, exempt and
non-exempt. Upon completion of payments under the
plan, the debtor typically receives a discharge, even if
he has paid less than 100% of the debt. Certain debts,
however, must be paid in full to be discharged, such as:
1. Certain child and spousal support debts;
2. Restitution orders and criminal fines;
3. Debts caused by the debtor's drunk driving;
4. Most student loans;
5. Recent taxes.
The debtor attends a meeting of creditors. Creditors are
not entitled to vote on the plan, but are allowed to file
objections to the plan if they believe that the plan does
not comply with Chapter 13 requirements.
Creditor Payments
Creditors will receive differing amounts of money under
a Chapter 13 plan, depending on the nature of the
debt, i.e., whether priority, unsecured non-priority, or
secured. Priority debt typically includes recent taxes
(generally less than 3 years old), and certain spousal
and child support claims. Unsecured non-priority debts
include older income taxes (generally, more than 3
years old), credit card debt, medical bills, personal
loans, and any deficiency claims. Secured debts include
real estate mortgage loans, car loans, and furniture and
jewelry loans.
These payments are made by the debtor making
payments to the trustee, and the trustee then making
disbursements to the creditors.
For more information concerning Chapter 13 Bankruptcy
or other related legal matters in the Commonwealth of
Kentucky, Attorney Eric L. Crump is available for
consultation. To set up an appointment, please feel free
to call (502) 540-9958 or email at
ecrump@crumplawoffice.com.
for individuals with regular income, who have unsecured
debts under $269,250 and secured debts under
$807,750.
Starting the Bankruptcy
The debtor files a bankruptcy petition with schedule of
assets and liabilities and statement of financial affairs,
along with a Chapter 13 plan. The plan provides for
repayment of the debtor's debts over a 3-5 year period,
from the future earnings of the debtor. A trustee is
appointed to receive payments from the debtor and
disburse them to creditors. The debtor remains in
possession of all of his property, exempt and
non-exempt. Upon completion of payments under the
plan, the debtor typically receives a discharge, even if
he has paid less than 100% of the debt. Certain debts,
however, must be paid in full to be discharged, such as:
1. Certain child and spousal support debts;
2. Restitution orders and criminal fines;
3. Debts caused by the debtor's drunk driving;
4. Most student loans;
5. Recent taxes.
The debtor attends a meeting of creditors. Creditors are
not entitled to vote on the plan, but are allowed to file
objections to the plan if they believe that the plan does
not comply with Chapter 13 requirements.
Creditor Payments
Creditors will receive differing amounts of money under
a Chapter 13 plan, depending on the nature of the
debt, i.e., whether priority, unsecured non-priority, or
secured. Priority debt typically includes recent taxes
(generally less than 3 years old), and certain spousal
and child support claims. Unsecured non-priority debts
include older income taxes (generally, more than 3
years old), credit card debt, medical bills, personal
loans, and any deficiency claims. Secured debts include
real estate mortgage loans, car loans, and furniture and
jewelry loans.
These payments are made by the debtor making
payments to the trustee, and the trustee then making
disbursements to the creditors.
For more information concerning Chapter 13 Bankruptcy
or other related legal matters in the Commonwealth of
Kentucky, Attorney Eric L. Crump is available for
consultation. To set up an appointment, please feel free
to call (502) 540-9958 or email at
ecrump@crumplawoffice.com.
| WE ARE A DEBT RELIEF AGENCY – WE HELP PEOPLE FILE FOR BANKRUPTCY RELIEF UNDER THE BANKRUPTCY CODE |
| 620 South Third Street, Louisville, Kentucky 40202 Phone: (502) 540-9958; Fax: (502) 540-9957 email: contact@crumplawoffice.com |