WOODBURY CHAPTER 13 BANKRUPTCY CAN HELP YOU EXPERIENCE FINANCIAL RELIEF
Filing Chapter 13 bankruptcy in Woodbury, Minnesota could be your next step toward financial freedom. If your debt has become overwhelming, you can use Chapter 13 to create a repayment plan that works for you. Over three to five years, you can make realistic payments and have your remaining qualified debts discharged at the completion of your plan.
The bankruptcy lawyers at our Woodbury Law Office can walk you through the Chapter 13 bankruptcy process and answer any questions you may have. If you’re unsure how to proceed, set up a free consultation with one of our attorneys.
How it works
Through Chapter 13 bankruptcy, you can make realistic payments toward your debt. Chapter 13 bankruptcy is characterized by a three- to five-year repayment plan. The length of your plan is mainly determined by your income. If your income is less than the median income, you will generally follow a three-year plan. If your income is greater than the median income, you will generally follow a five-year plan.
The repayment plan will set the payments made to the bankruptcy trustee. The trustee is responsible for distributing these payments to the owed creditors. Once you have filed, creditors can no longer collect on the owed debts. Because of the automatic stay put in place once you file, collectors can no longer call you to request payments.
Once your repayment plan is completed, any remaining qualified debts are discharged.
With a Chapter 13 bankruptcy filing, you can protect most of your assets. Plus, you can protect your home from foreclosure and your car from repossession.
You will still be responsible for mortgage payments on your home as they come due after you file, but you can stop a foreclosure proceeding. You can repay the arrears you owe with low payments over the duration of your plan.
You may also be able to stop the repossession of your car with a Chapter 13 bankruptcy filing. With your repayment plan, you can pay off your vehicle, usually for less than what you contractually owe.
The automatic stay in place after you file is another benefit of Chapter 13 bankruptcy. Because of this, collectors can no longer contact you for payment. The bankruptcy trustee will use the money collected in your repayment plan to appropriately pay creditors.
The bankruptcy attorneys at our Woodbury Law Office can meet with you for a free 30-45 minute consultation to discuss your financial situation. During this time, you can discuss your debt struggles, financial goals, and the best step 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 meeting will take place at the United States Courthouse which is located at 316 North Robert Street, Room 402 St. Paul, MN 55101
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.
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.