CHAPTER 13 BANKRUPTCY IN MAPLE GROVE, MN CAN HELP YOU GET BACK ON YOUR FEET
Looking for a Maple Grove Chapter 13 Attorney? Are you facing debt you can no longer repay on your own and you live in Maple Grove, Minnesota? Working through a repayment plan with Chapter 13 bankruptcy could help. Through Chapter 13 bankruptcy, you can make lower monthly payments while still protecting most of your valued assets. The three- to five-year repayment plan can help you regain a confidence and peace of mind toward your finances. Contact the attorneys at our Maple Grove Law Office to set up a free consultation. They have the expertise to help you determine what your best next step may be.
How it works
Central to Chapter 13 bankruptcy in Maple Grove is the repayment plan. The repayment plan will last between three to five years, depending on your income. If your income is less than the median income, you will generally work through a three-year plan. If your income is greater than the median income, you will generally work though a five-year plan.
During this plan, you will make structured payments to the appointed bankruptcy trustee. The trustee is responsible for then distributing these funds to the owed creditors. Once you have filed for bankruptcy, there will be an automatic stay. The automatic stay prevents collectors from directly contacting you for payments.
With Chapter 13 bankruptcy, you can protect your important assets. You can protect your home from foreclosure or car from repossession.
Once you have filed, you can stop foreclosure proceedings on your home. You will still be responsible for mortgage payments on your home as they come due after the filing of your case. This plan allows you to repay the arrears you owe with low payments over time.
You may also be able to prevent the repossession of your car. During the three- to five-year payment plan, you can arrange to pay off your vehicle. Usually, these payments will result in actually paying less than what you contractually owe.
Peace of mind and relief from collector calls can also be found in Chapter 13 bankruptcy filing. The bankruptcy trustee pays creditors on your behalf. The automatic stay prevents collectors from directly contacting you.
The bankruptcy attorneys at our Maple Grove Law Office will help you pursue your financial goals. During a free 30-45 minute consultation, you can describe your concerns and determine what your best next step may be. With over 100 years of combined experience, the lawyers at Hoglund Law can successfully help you reach financial stability.
If you are considering filing for bankruptcy, your first step should be consulting a trustworthy bankruptcy attorney. They will help you gather essential documents, file your petition with the court, and answer your questions along the way.
Within 180 days of filing, you will complete a credit counseling course. Once filed, you will propose your repayment plan and attend a 341 meeting.
During the three to five years of your repayment plan, you will make payments to the bankruptcy trustee. The trustee will administer these payments to the creditors owed. Following the completion of the plan, any remaining qualified debts are discharged.
A bankruptcy trustee is an attorney appointed by the government to administer your case. The trustee accepts your payments and pays the creditors owed in accordance with your repayment plan.
A 341 meeting is a meeting between yourself, the creditors, and the bankruptcy trustee. During this meeting, the trustee or creditors can ask questions and verify information about your filing or repayment plan.
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 meeting will take place at the United States Courthouse which is located 300 S 4th Street, Room 1017, Minneapolis MN 55402.
The Proof of Claim is filed by creditors in a bankruptcy case. A proof of claim is filed by a creditor to prove that a debt is owed to them. The trustee uses this to administer the repayment plan payments.
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.