Debtors in Chapter 13 keep all of their property, whether or not it is exempt, but they make regular payments on their debts out of the money that they earn after filing the bankruptcy case. These payments must be at least as much as would have been paid to creditors in a Chapter 7 case. The payments are made to a trustee, who distributes the payments to the creditors. The payments are made in regular installments, according to a plan that the debtor draws up (usually with the help of an attorney). The plans last either until the debts are paid in full or until the end of a three to five year period. The debtor receives a discharge at the end of the plan. Before filing Chapter 13, debtors are required to complete a credit counseling session with an approved counseling agency.
A Chapter 13 case can be filed by most consumer debtors. There are two principal requirements: First, the debtor must have regular income, although this need not be from a job—regular benefit payments or rental income would qualify. Second, the debtor must not have excessive debt. Chapter 13 is available only to debtors who DO NOT owe more than a certain amount in secured debt (like home mortgages and auto loans), and no more than a certain amount in unsecured debt (like most credit card and medical debt). Your attorney can review these amounts with you.
We are available to discuss your bankruptcy  options at any time. Maybe Chapter 13 is the best for you, maybe Chapter 7.  The first discussion with us in the office is free and there is no obligation. Call Kentucky Bankruptcy Attorney John Rogers today.