Bankruptcy Lawyer
Florence, Boone County, KY | Covington, Kenton County, KY

Bankruptcy is a federal court process designed to help consumers and/or businesses eliminate their debts or repay them under the protection of the bankruptcy court. Bankruptcies can generally be described as either "liquidations" or "reorganizations."

What is a Chapter 13 bankruptcy?

Chapter 13 is a "reorganization" bankruptcy for consumers – you repay all or parts of your debts over three to five years. A Chapter 13 is also known as a "Wage-Earners Plan or Repayment Plan." As its name implies, it provides a way to repay all or at least some of the money you owe to your creditors from the income or wages you earn. Some think of it as a debt consolidation. In a Chapter 13 you develop a repayment plan with the help of your attorney. Your plan lets you pay back some or all of the money you owe, and usually takes three to five years to complete. Chapter 13 bankruptcies are commonly used to stop foreclosures and set up a payment plan for the debtor to catch up mortgage payments and cars loans.

What is an Automatic Stay?

The moment a bankruptcy petition is filed, an automatic stay is issued by the court to all of creditors which is an injunction that automatically stops, immediately, all lawsuits, foreclosures, repossessions, wage garnishments, and collection activity against you.