It is easy to get behind financially. For some Kentucky residents, one or two unexpected expenses can wreak havoc on the budget. In such circumstances, there is no way to pay everything that is due. This often causes one to get further and further behind with no way break the cycle. Fortunately, Chapter 13 bankruptcy offers a way to make the necessary changes and become financially stable once again.
Chapter 13 bankruptcy allows the individual to establish a repayment plan. This plan spans a three to five year year time period in which the individual will pay off all or part of his or her debts. At the end of this established time period, the majority of remaining debts are discharged. It is important to keep in mind that there are some debts that are not eligible to be discharged.
Additionally, there are some debts that the individual will not want to be discharged. For example, one of the primary reasons for filing Chapter 13 bankruptcy rather than another form is the ability to be able to retain certain assets. If one wishes to keep the family home, it will be necessary to catch up on past due mortgage payments and then continue making such payments. This also holds true if the individual wants to retain a specific vehicle that is financed.
A car accident, medical emergency or loss of employment can easily change one's financial status. While this change may not be the individual's fault, it certainly affects the individual's ability to remain current on outstanding debts. For some Kentucky residents who find themselves in this position, Chapter 13 bankruptcy offers the flexibility that they need to catch up and recover.
Source: kentuckybankruptcy.info, "Kentucky Chapter 13 Bankruptcy Information", Accessed on June 12, 2017