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Chapter 13 bankruptcy can take care of the 'if only's'

"If only" can apply to many financial situations. "If only" there was a little more time to pay these debts. "If only" the house was not at risk of foreclosure or the car at risk of repossession. For many Kentucky residents, Chapter 13 bankruptcy is the answer to these "if only" concerns.

Chapter 13 bankruptcy can often give the individual the time needed to catch up on payments and possibly avoid foreclosure or repossession. With this type of bankruptcy, the individual develops a repayment plan that is presented to the bankruptcy court. Depending on the situation, this repayment play can cover a three- or a five-year time period.

At the end of the repayment play period, certain debts can be discharged. However, the individual can elect to reaffirm certain debts in order to keep the assets that are attached to them. For example, under the repayment play, credit card debt can be discharged. In addition, mortgage debt can be discharged; however, the individual may want to keep the home that is mortgaged. In this case, the individual will want to reaffirm this debt.

Chapter 13 bankruptcy does require that the individual have sufficient income to make payments under the repayment plan. Additionally, there needs to be enough income to catch up on any mortgage or car loan payments that are delinquent if the individual wishes to reaffirm these debts. An experienced bankruptcy attorney can help one decide if Chapter 13 bankruptcy is the "if only" solution that the Kentucky resident is looking for.

Source:, "Bankruptcy -- Kentucky frequently asked questions", Accessed on April 2, 2017

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