WHY IS CHAPTER 13 BANKRUPTCY?

30 Oct WHY IS CHAPTER 13 BANKRUPTCY?

Chapter 13 Bankruptcy is often referred to as a “repayment” plan since indebted individuals pay a portion of their debts through 3 to 5-year plan.  Payments depend on what you can pay after your reasonable monthly expenses are deducted. 

The benefit of chapter 13 is you have control of the repayment.  Your gross income minus payroll deductions is the first part of the calculations.  Next your reasonable necessary expenses are deducted. The difference between the two is what your plan payment will be.

CHAPTER 13 BANKRUPTCY PROCESS: 5 STEPS TO A DEBT FREE LIFE 

The filing of a Minnesota Chapter 13 bankruptcy consists of five steps: 

• Step 1 

FREE NO OBLIGATION CONSULTATION 

The initial meeting should be with your attorney. The meeting can be in person, over the telephone or through Skype. Face to face is best, however given new technology telephone and Skype work very well.   

At the meeting you will go over your financial situation to determine what is the best option to help with your debt.  Depending on the best solution, you will likely go home with a retainer agreement and an intake packet. The retainer agreement will tell you exactly what the attorney will do for you and the total cost.  The intake packet is where you provide your financial information to be reduced into the petition.

• Step 2 

PETITION REVIEW, APPROVAL AND FILING

Once the petition and plan are drafted, the next steps are to make sure everything true and correct. The petition and plan are filed under oath and everything needs to accurate.  Once the petition and plan is confirmed to be correct you will sign the signature pages. The petition and plan will then be filed.

• Step 3 

341 MEETING OF CREDITORS 

30 days after your filing your first plan payment is due.  Also 30 days after filing you will attend a meeting with the trustee. Your attorney Michael Bolinske will be present with you at the meeting. The meeting itself is a chance for the trustee to verify your identity as well as the facts of your case.  The major concern is to ensure your income and expenses are correct. Although creditors are invited to attend the meeting, they typically do not attend. 

• Step 4 

CONFIRMATION HEARING & PLAN 

30 to 60 days after the 341 meeting you can expect your plan to be confirmed.  The confirmed plan is what controls what is paid over the term of the plan. No attendance is typically required at the confirmation hearing.

• Step 5 

DISCHARGE

Upon successful completion of term of the plan or payment of one hundred percent of the claims filed, a discharge can be granted.  The discharge is what precludes creditors from ever collecting on the debt again. If a creditor attempts to try to collect after discharge it is a violation of federal law.

WHO CAN FILE CHAPTER 13 BANKRUPTCY? 

Anyone can file for chapter 13 bankruptcy protection so long as you have something to pay into the plan. Obviously you will need to meet with an attorney to confirm a chapter 13 is appropriate for you.

ADAVNTAGES TO FILING A CHAPTER 13 BANKRUPTCY IN MINNESOTA 

• Creditors cannot contact you directly, they are held to the term of the plan

• No interest can be collected during the term of the plan

• Your assets are protected and you can keep your property

•  The amount you pay is set

• What ever is not paid at the end of the plan is discharged

Why is Bolinske Law the law firm you should hire?

We have been practicing debtor creditor law for over 15 years.  We care about our clients and want them to succeed. We owe you the duty to do what is best for you to get rid of your debt!