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Thousands of people file for Chapter 13 bankruptcy in Kentucky each year. In fact, there were 9,863 Chapter 7 filing in Kentucky and 5,174 Chapter 13 filling in Kentucky. Filing Chapter 13 is a big decision. You are committing to a bankruptcy repayment plan that could last for up to five years. 

This is why understanding the bankruptcy differences and understand your Chapter 13 plan payment is crucial to making the most informed decision. Let’s get started.

Chapter 13 Bankruptcy Plan Payment in Kentucky

Your Chapter 13 plan payment in Kentucky depends on your unique financial situation, which is why we build a Kentucky Chapter 13 Plan Payment calculator below that you can use to estimate your Chapter 13 plan payment.

Factors used when calculating a Chapter 13 plan include, but are not limited to:

  • Disposable Income — The amount of income you have each month after subtracting allowable payroll deductions and allowable living expenses from your gross monthly income.
  • Assets — In some cases, the value of your assets could increase the amount of your Chapter 13 plan if your assets have large amounts of non-exempt equity. We discuss Colorado bankruptcy exemptions in more detail below and how exemptions impact your Chapter 13 plan. 
  • Debts — Some debts must be paid in full through the Chapter 13 plan (priority unsecured debts such as taxes, alimony, child support, and administrative costs). Other creditors may receive partial payments, including unsecured debts, such as medical bills, credit card debt, and personal loans. Chapter 13 plans typically include back mortgage payments and car loan payments.
  • Recent Financial Transactions — Some recent financial transactions could impact your Chapter 13 plan. 

You can also explore detailed information about Chapter 13 by reading our article entitled “Chapter 13 Bankruptcy – Everything You Need to Know.”

Chapter 13 Bankruptcy vs Chapter 7 Bankruptcy

Even before we can look at Kentucky-specific bankruptcy details, it is advisable to know the difference between Chapter 7 bankruptcy and Chapter 13 bankruptcy. Another name for Chapter 13 bankruptcy is ‘wage earners’ bankruptcy. In this type of bankruptcy, debtors enter into a payment agreement that can run for thirty-six to sixty months, payable monthly. Please keep in mind that ineligibility for Chapter 7 is what drives most people to Chapter 13. Other reasons why they choose Chapter 13 are a high monthly income and high-value assets.

Chapter 7 bankruptcy, on the other hand, is known as ‘liquidation bankruptcy.’ It is a type of debt relief for debtors who can’t pay their debts and would like to be discharged from the debts. As long as you are eligible, a Chapter 7 process can be finalized in 120 days, and it is less expensive. You can make use of our calculator below to receive an estimate of your monthly Chapter 13 payment schedule and find out if you qualify for Chapter 7.

Kentucky Means Testing

The calculator above has utilized Kentucky means testing data found here to establish the debtor’s eligibility for Chapter 7. Also, the table shows information regarding the Kentucky Means Test from May 15, 2021:

# of PeopleAnnual Income

Chapter 13 Bankruptcy Kentucky Exemptions

Before you can start the Chapter 13 bankruptcy process, find out if you own any property that is higher than the stipulated exemption amount. You may qualify for Chapter 7, but the fact that you possess high equity assets makes debt settlement or Chapter 13 a more logical choice.

While you are filing for bankruptcy in Kentucky, ensure that you consider the bankruptcy exemptions and statutes relevant to the state. Liquidation of your assets is a real possibility in case they are higher than the Kentucky exemptions. Check out the Kentucky bankruptcy exemptions if you plan on filing for bankruptcy in Kentucky.

Kentucky Bankruptcy Trustees

The responsibility of administering the bankruptcy and liquidating the non-exempt assets of the debtor falls upon the trustee. Note that there the Chapter 7 Trustees in Kentucky and Chapter 13 Trustees in Kentucky can be found on the Justice Department’s website.

Chapter 7 Trustees in Kentucky

EasternMichael L. Baker(859) 426-1300
EasternJ. Clair Edwards(859) 225-5275
EasternL. Craig Kendrick(859) 371-4321
EasternJames D. Lyon(859) 252-4148
EasternMark T. Miller(859) 887-1087
EasternLori A. Schlarman(859) 586-1526
EasternPhaedra Spradlin(859) 263-3210
EasternJames R. Westenhoefer(859) 624-0145
WesternJerry A. Burns(270) 796-9090
WesternMark H. Flener(270) 783-8400
WesternRobert W. Keats(502) 587-8787
WesternWilliam W. Lawrence(502) 581-9042
WesternMaurice R. Little(270) 821-0110
WesternHarry L. Mathison, Jr.(270) 827-1852
WesternW. Stephen Reisz(502) 584-1000
WesternBradley S. Salyer(270) 842-9005
WesternMichael E. Wheatley(502) 744-6484

Chapter 13 Trustees in Kentucky

EasternBeverly M. Burden(859) 233-1527
WesternWilliam W. Lawrence(502) 581-9042

Kentucky Bankruptcy Districts and Court Locations

Kentucky has two bankruptcy districts. Check out the two links below to read more about the court locations and details.

Should you pursue Chapter 13 bankruptcy in Kentucky?

As a debtor who is not eligible for Chapter 7 or doesn’t want to go that route, choosing Chapter 13 can be an option. But it is vital to study other alternative solutions apart from Chapter 13. Such alternatives include debt settlement and debt management. By utilizing our Chapter 13 calculator, you will view your choices, plus all the disadvantages and advantages. The calculator can come in handy as a resource or as a personal research tool. Although debt can make life unbearable, we believe that you have learned some vital tips from this article that will set you on a debt-free life.

Post Author: Ben Tejes

Ben Tejes is a co-founder and CEO of Ascend Finance. Before Ascend, Ben held various executive roles at personal finance companies. Ben specializes in Chapter 13 Bankruptcy, Debt Settlement, Chapter 7 Bankruptcy and debt payoff methods. In his free time, Ben enjoys spending time going on adventures with his wife and three young daughters.

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