Minnesota Chapter 13 Bankruptcy

If you are thinking about filing for chapter 13 bankruptcy in Minnesota, this article should help you get to know the process a bit better. Once you have made the decision that you can no longer afford to pay your bills as they come due, or are already behind on your bills, then chapter 13 is a viable option for you. The most common reasons somebody files a chapter 13 bankruptcy rather than a chapter 7 bankruptcy are income is too high to qualify for a chapter 7 bankruptcy, the individual does qualify for an exception to the means test, the individual has debt that can be paid back in a chapter 13 that is not covered by a chapter 7, the individual wants to catch up on past due house or car payments, desire to pay the creditors back what they can afford. The list does not cover every reason a person would want to file a chapter 13 bankruptcy, but covers the main reasons.
The chapter 13 bankruptcy process is roughly the same as a chapter 7 bankruptcy, except in a chapter 13 bankruptcy the client is looking to make a budget, that will set out the monthly payments on the debt they owe. The typical chapter 13 plan is either 36 months or 60 months depending upon their income level. This means that payments will have to be made every month for the entire plan. The budget is based on our clients reasonable expenses and their income. The payment in a chapter 13 bankruptcy is completely dependant upon the clients budget and income, so we do not know what payments will be until we have all the clients budget information and paystubs from work. The repayment to creditors can range between 10% and 100% dependant upon each person financial situation. In most cases a chapter 13 bankruptcy is a much better option than debt consolidation, since the process is sanctioned by the U.S. Constitution, and enacted by the U.S. Legislature. If you are thinking about debt consolidation give our office a call first to determine what other options are available to you. If you want more information you can find it online at www.bolinskelaw.com.