When you have filed for Chapter 13 bankruptcy in Kentucky, you have agreed to a process whereby your debts will be reorganized to allow you to negotiate a customized plan for repaying the money you owe. Your level of commitment to abiding by the agreement you have helped to create and your effort to change your habits and prevent your debts from getting out of control again can help you to realize the maximum value of your decision to file for bankruptcy.

Because bankruptcy is a blanket term to describe several steps within a process of reducing your debt, taking the time to understand each step may help you to proceed with more confidence and wisdom. Toward the end of the bankruptcy, you may be given the opportunity to accept a discharge of your debts. According to the United States Courts, in Chapter 13 bankruptcy, if you have upheld your agreement to reorganize your debts and have made an effective effort to repay on your loans, you will be extended a discharge that goes into effect immediately. This will prevent creditors from seeking any further action against you and will suspend the efforts of collections companies to acquire money from you.

Not all of your debts will be discharged. Depending on the nature of your case and the types of debts you have, you will still be required to pay in full on certain things. For example, some taxes, any alimony or child support payments or legal fines for things such as drunk driving, will still need to be honored despite your bankruptcy filing. Once you have been issued a discharge, you can continue to pay on discharged debts voluntarily, if you desire to for reasons such as maintaining your reputation or because you desire to feel the reassurance that you have paid all of your debts in full.

When you spend time learning about the process of bankruptcy, you may be better able to make decisions that will benefit your efforts to consolidate and reduce your debt. For more information about how bankruptcy works, visit our web page.