CHAPTER 13 BANKRUPTCY CAN HELP YOU PURSUE FINANCIAL FREEDOM
Chapter 13 bankruptcy can help you experience financial relief. This filing of bankruptcy is sometimes referred to as the ‘Wage Earner’s Plan.’ Through Chapter 13 bankruptcy, you will make structured monthly payments that work for you over a three- to five-year debt plan.
Meet with one of our knowledgeable bankruptcy attorneys at our law office to discuss the benefits and finer details of a Chapter 13 bankruptcy. During this free consultation, you can determine what your next step toward financial freedom is.
How it works
Chapter 13 bankruptcy creates a repayment plan that is realistic for you. The repayment plan will last three to five years. The length of your repayment plan is largely determined by your income. Generally, if your income is below the median income, you will work through a three-year plan. A five-year plan will generally be used for those with income greater than the median income.
Once you have filed, a bankruptcy trustee will be assigned to oversee your case. The structured monthly payments are paid to the trustee. The bankruptcy trustee is responsible for then distributing these payments to your creditors. Once you have completed the three- to five-year plan, any remaining qualified debts are discharged. The discharge of your debts means you are no longer personally liable for them.
Chapter 13 bankruptcy allows you to protect your most valued assets and provides a peace of mind. You can stop a foreclosure proceeding on your home, prevent your car from a repossession, and stop calls from collectors.
Once filed, you can stop a foreclosure proceeding on your home. You will still be responsible for mortgage payments as they come due after you have filed. The arrears owed on your home can be paid through low payments over the length of your repayment plan.
You may also be able to stop the repossession of your car through Chapter 13 bankruptcy. Over the length of your repayment plan, you can pay off the debts owed on your car. In many cases, you will end up paying less than what you contractually owe.
Chapter 13 bankruptcy can also provide a peace of mind. Once you have filed, there is an automatic stay in place. Collectors can no longer call you to request payments, and the trustee will be responsible for directly paying your creditors.
Schedule a free consultation with one of the attorneys at our law office to discuss your options. Our bankruptcy lawyers have over 100 years of combined experience, giving them the background knowledge to help you pursue financial relief. During this 30-45 minute meeting, you can express your concerns and discuss what is best to help you move forward.
A bankruptcy trustee is an attorney who has been appointed to oversee your case. The trustee is responsible for accepting your payments and then using the funds to repay your creditors.
A 341 hearing is a meeting held by the bankruptcy trustee and attended by yourself, the creditors, and the trustee. During this meeting, the trustee or creditors can ask questions about the details of your repayment plan or your financial situation.
You must bring the following to the 341 meeting to present to the trustee:
- Picture identification, such as a driver’s license or passport
- Proof of your social security number, in the form of a social security card, W-2 or payroll stub
- Your most recent paystub if you are employed
- Statements for your deposit or investment accounts (including checking, savings and money market accounts, mutual funds and brokerage accounts) for the time period that includes the date of filing of the bankruptcy petition
For Brooklyn Center residents, the 341 hearing will take place at the United States Courthouse which is located at 300 S 4th Street, Room 1017, Minneapolis MN 55402.
Secured Debt: A debt with collateral connected to it. For example, the mortgage on your home would be a secured debt.
Priority Unsecured Debt: Debts that are entitled to be paid first in a repayment plan, such as past due child support and certain taxes.
Nonpriority Unsecured Debt: Debts with no collateral or priority status like credit card debt, medical bills, student loans, and certain personal loans.