EDEN PRAIRIE CHAPTER 13 BANKRUPTCY CAN HELP YOU EXPERIENCE FINANCIAL RELIEF
Chapter 13 bankruptcy can help find relief from the debts you can no longer handle on your own. Through a three- to five-year repayment plan, you can reorganize your debts into payments that are realistic for you.
The repayment plan allows you to lower your monthly payments while getting back on your feet. Through Chapter 13, you can also prevent the foreclosure of your home, the repossession of your car, end garnishments, and get rid of unsecured debts.
Meet with one of our bankruptcy attorneys at our Eden Prairie Law Office to see if Chapter 13 bankruptcy is right for your financial situation.
How it works
Chapter 13 bankruptcy reorganizes your debts. Through a three- to five-year repayment plan, you will make structured payments to the bankruptcy trustee, who then will pay the creditors owed.
Once you file, there is an automatic stay in place. Because of the automatic stay, collectors can no longer call you to collect payments.
Following filing, your repayment plan will be determined. The length of your repayment plan is largely dependent on your income. If your income is less than the median income, you will generally have a three-year plan. If your income is greater than the median income, you will generally have a five-year plan. After the completion of your plan, any remaining qualified debt is discharged.
Through Chapter 13 bankruptcy, you can protect most of your important assets. For example, you can prevent the foreclosure of your home and repossession of your car.
Once you have filed, you can put a stop to foreclosure proceedings on your home. The repayment plan allows you to repay the arrears owed over the length of your repayment plan, instead of having to pay it at once. Though you can stop foreclosure proceedings, you are still responsible for regular mortgage payments on your home as they come due after filing.
Similarly, you can also make payments toward the debt owed on your vehicle through the repayment plan. The plan allows you to pay what is owed on the car over the course of the plan instead of having it repossessed for delinquent payments.
The automatic stay in place once you’ve filed also prevents garnishments and harassing calls from collectors.
If you’ve found you’re in financial distress, set up a free consultation with one of the bankruptcy attorneys at our Eden Prairie Law Office. During this 30-45 minute meeting, you can express how overwhelming debt has affected you.
Our bankruptcy attorneys have the expertise to advise your steps moving forward.
You should start by consulting with a Woodbury Chapter 13 Bankruptcy Attorney you can trust. Your attorney will answer your questions, help gather the necessary documents, and file your petition with the court. You will need to complete a credit counseling course within 180 days before the filing of the bankruptcy.
Your attorney will then file your petition with the court. After you have filed, you will propose the repayment plan and attend a 341 hearing, also called a meeting of creditors.
You will then make payments to the bankruptcy trustee in accordance with your repayment plan. The trustee will repay your creditors with these funds. Upon the completion of your three- to five-year plan, any remaining unpaid debts that qualify are discharged.
A bankruptcy trustee is an attorney who has been appointed to administer your case. The trustee accepts your payments and distributes them to repay your creditors.
A 341 meeting is a mandatory meeting between yourself, the creditors, and the bankruptcy 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
The 341 hearing is a mandatory meeting between you and the creditors. For Eden Prairie residents, it will take place at the United States Courthouse which is located at 300 South Fourth St. Minneapolis, MN 55415.
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.