17 Oct Minneapolis and St Paul Chapter 13 Bankruptcy
If you are looking for to file chapter 13 bankruptcy protection in Minneapolis or St Paul you should look into contacting our law firm. We work with our clients to come up with a budget based on reasonable expenses. If you are looking at some other law firms they simply plug in the national standard numbers for expenses that are based on the IRS guidelines for people on an IRS repayment plan. These numbers in most cases do not accurately represent a typical families expenses in Minnesota. The expenses in a chapter 13 plan have to be reasonable, but they are not meant to be punitive and not allow you the expenses that you need to live. Each client has a unique circumstance in terms of expenses and we work with our clients and the chapter 13 Trustee to come up with a repayment plan that works.
The standard for clients though is not a standard that allows the same spending habits that got the client into trouble in the first place. You would not be allowed very high living expenses, even though that is what you always spent, the Trustee’s job is to make sure they achieve a fair repayment plan for creditors and debtors. It does not do any good to make a plan that is going to fail, our clients have to be able to afford the plan payments for the duration of the chapter 13 plan. Currently most plans are either 36 or 60 months depending upon the clients income. If your income is above the median then you get a 60 month plan, if below the median the income is 36 months. In most cases a chapter 13 bankruptcy will be a 60 month plan where excess income is used to pay creditors. This option in most cases is better than debt settlement. Debt settlement does not create any binding legal settlement on creditors, a chapter 13 bankruptcy creates a legal agreement between you and your creditors. Chapter 13 bankruptcy is more successful that debt settlement, and can do more to help clients stay in their home. If you are feeling the financial pinch call our office to determine if chapter 13 bankruptcy can help you. We offer a no fee initial consultation to help our clients determine if bankruptcy is right for them.