How To Prepare To File A Chapter 13 Bankruptcy In Minnesota

If you are thinking about filing for bankruptcy in Minnesota, you may need to file a chapter 13 bankruptcy. Chapter 13 bankruptcy is generally required when your income exceeds the median income for the county you live in. If your income exceeds this median level, or you have other issues that require a chapter 13 bankruptcy, this article will help you plan for how to make it work. Of course you will need to talk to an experienced attorney who handles chapter 13 bankruptcy to determine the benefits of chapter 13 bankruptcy for your situation.
The first thing when filing for chapter 13 bankruptcy is to make sure you have reliable transportation to get to work. It is best to have a vehicle that will last the entire 5 years of your bankruptcy plan, with minimal repair expenses. You want to minimize these expenses, since you will be on a fixed budget for the five years of your plan. It is also important to have reliable transportation so you can continue to get to work, to make the money to fund your bankruptcy plan.
The next thing you may want to do is make sure you are contributing to your 401k plan at work. This is important because you do not want to neglect your retirement savings for the five years of the chapter 13 bankruptcy. The good guideline for a contribution is at what your employer will match with additional funds. Of course this is assuming that your budget will allow this contribution. Our office has had clients that did not have the free money to cover any expenses beyond their basic living expenses and the chapter 13 payment.
The final step is to make sure you have looked over your income and expenses carefully with the help of your attorney, to make sure you have accounted for all of your expenses. Generally you are allowed reasonable expenses for the term on your chapter 13 plan. Reasonable expenses can vary depending upon your circumstances, but need to be reviewed by your attorney to make sure all the expenses are legitimate. You may be forced to justify some of your expenses if the bankruptcy trustee thinks the expenses are high for a similar sized family.
This article just touches on a few basic tips for filings a chapter 13 bankruptcy. To give you more information you would need to contact our office at 952-294-0144 or find us online at