Restructure and Eliminate Debt with Chapter 13 Bankruptcy
Thousands of Minneapolis residents will need to restructure their debt this year. We can help!
Chapter 13 is a court-supervised repayment plan that allows debtors to take back control of their finances. It is sometimes referred to as the ‘Wage Earner’s Plan.’
For Minneapolis and all Minnesota residents, it means you may file bankruptcy that will help you if you are having problems meeting debt obligations.
As a Minneapolis Bankruptcy Law Firm, our lawyers have over 100+ years of combined experience in filing bankruptcy claims.
With Chapter 13 You Can
- You can stop collections in their tracks
- You can end garnishments
- You can prevent foreclosure on your home
- You can make structured payments through the appointed bankruptcy trustee
- You can eliminate the second mortgage on you home in some circumstances
- You can avoid having your car repossessed
- You can eliminate most of many unsecured debts
- You may eliminate or make favorable payment arrangements for past-due taxes
- You can lower the payments on secured debt by extending payments over several years
How it works
A Chapter 13 bankruptcy is the reorganization of your debts. It creates a repayment plan lasting three to five years that repays the creditors. Through the plan, you will make fixed payments to a bankruptcy trustee, and the trustee will distribute these payments to your creditors. The creditors will no longer be able to pursue you for collection of the debts.
The length of your repayment plan depends on your monthly income. If your current income is less than the state median, your plan will generally last three years. If your current income is greater than the state median, your plan will generally last five years.
Chapter 13 bankruptcy filing is often considered less disruptive to the filer’s way of life. Under Chapter 13, you can protect yourself from foreclosure on your home. Though you still have to make mortgage payments as they come due, this filing can stop the foreclosure proceedings and allow for a repayment of what you are behind on that can extend for five years. This allows you to have low payments for these arrears rather than to pay them all at one time.
A Chapter 13 can also stop repossession. It allows you to pay the car that would be repossessed through the plan. Potentially, you can request from the car company a lower interest rate or if you are eligible you can pay only the value of the car through a cramdown.
Another advantage is that you no longer have to communicate with creditors. After filing, there is an automatic stay in place that prevents creditors from contacting you directly for payments. Once the repayment plan is in place, the trustee will distribute the payment among the creditors. This means creditors cannot garnish you or harass you any longer.
Come see us at our Minneapolis Bankruptcy Law Office for a free 30-45 minute consultation. Our bankruptcy attorneys have over 100+ years of combined experience, giving them the expertise to answer your questions. During this consultation, you can express your specific financial needs and goals to determine your best path to financial freedom. You may either call our Minneapolis Law Office at (612) 294-0070 or contact us here.
Filing bankruptcy should start with finding a bankruptcy attorney you can trust. After this, you will complete a credit counseling course within 180 days of filing.
Then, you will file necessary documents with the court and pay filing fees. Following filing, you will propose your repayment plan and attend a 341 meeting.
After the filing of your case, you will make payments to your appointed trustee who will distribute them among creditors. After the three to five years, remaining qualified debts are discharged.
A bankruptcy trustee is an attorney who has been appointed to administer your case. The trustee takes your payments and distributes them to creditors according to your plan.
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 is a mandatory meeting between you and the creditors and will take place at the United States Courthouse which is located at 300 South Fourth St. Minneapolis, MN 55415
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 plan payments.
Proof of Claims : If your case starts with the year and a number 4 example 20-4XXXX, then your case is a Minneapolis Case. You may download this proof of claims form.
The Minneapolis Bankruptcy Trustees name, address, phone numbers and email address are printed on the notice toy receive once you have filed for bankruptcy. If you have misplaced the cases paperwork. You can always use PACER (Public Access to Court Electronic Records) or you may want to call the clerks office.
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.
Minneapolis is known for Prince, the Minnesota Twins and the Minnesota Vikings. It is the neighbor to the capitol of Minnesota which is St. Paul and is nestled along side the Mississippi river. With a population of 425,403 it is the largest city in Minneapolis and Hennepin County.