Minnesota Chapter 13 Bankruptcy
Minnesota Chapter 13 Bankruptcy is a type of bankruptcy that allows an individual person to pay their debt through a payment plan. Chapter 13 is a viable option for many individuals falling short on car or home payments who have a steady income established. This type of bankruptcy, as opposed to Chapter 7 bankruptcy, allows a person to catch up on past due payments (car or home as an example) by making Chapter 13 payments through the repayment plan.
One critical
component to Chapter 13 bankruptcy is that the debtor has a
disposable income that he or she can use to pay creditors. Typical
arrangements for Chapter 13 Bankruptcy in Minnesota allow for 3 or 5
year payment plans. Three year plans are common for persons who live
below the median income for the state they live in. If a debtor is
over the median income in their state then he or she may be eligible
for a 5 year payment plan.
How Does A Chapter 13 Case Start?
A petition is filed
with the court for a creditors meeting, also known as a 341 meeting.
341 meetings are scheduled typically 1 month after a petition for
Chapter 13 bankruptcy is filed. A 341 meeting is required to
determine that all the information in the petition is accurate.
Typically no creditors are involved in this meeting, but in some
situations they can be. The debtor must provide identification,
social security card, pay stubs, and bank statements during the
meeting.
What Happens After A 341 Meeting?
After the creditors
meeting (341), the court will then seek a confirmation hearing to
review the petition and the results of the 341 meeting. The court
can then approve the plan and the debtor must begin making monthly
payments to repay his or her debt. It is highly recommended to hire
a Minnesota Chapter 13 Bankruptcy Lawyer to help you with filing a
petition and have with you during the 341 meeting. A bankruptcy
lawyer can assist you with what you will need to know and expect for
the repayment schedule.
What Are The Advantages Of Chapter 13?
- No interest charged by credit card companies
- Creditors must accept the repayment plan
-
Avoid being sued when compared to a debt consolidation
plan
How Do I Get Started?
Contact Loraas & Loraas to speak with a skilled and dedicated bankruptcy lawyer who can provide guidance and assistance with your bankruptcy filing. Call us today to schedule a free consultation at (952) 890-5324.
The law firm of Loraas & Loraas is a debt relief agency. In addition to other legal services we offer, we help people file for bankruptcy relief under the U.S. Bankruptcy Code.