Chapter 13 bankruptcy in Minnesota is a crate way to pay off your outstanding debt without having to lose your assets and your property. This is essentially done by filing chapter 13 bankruptcy by reach you are buying some extra time to pay off all your debt. If you file chapter 13 bankruptcy in good faith and it is approved by the bankruptcy court, a bankruptcy trustee reviews your proposed statement and acts as the mediator between you and your creditors. You are given a specific time frame of 3 to 5 years by the court in which time you must pay off all your debt.
Chapter 13 bankruptcy is the right option for those people who have significant assets which they do not wish to lose as they would under chapter seven bankruptcy. Instead, they can choose to pay off the debt over an extended pier of time during which they will utilize their income or other ongoing Financial Resources to pay off the debt.
Chapter 13 Bankruptcy in Minnesota – Repayment Plan
Your repayment plan is one of the most important parts of your chapter 13 bankruptcy in Minnesota. In a repayment plan, you present a detailed account of how much you owe to whom and exactly how you plan on repaying that amount. This includes the time you will be taking and the means of income you will be employing to pay up. This repayment plan must be approved by the bankruptcy court in order for you to secure a chapter 13 bankruptcy. The court will take into consideration your income and your proposed timeframe to assess if your goal is a realistic enough to approve your bankruptcy.
Chapter 13 Bankruptcy in Minnesota and Foreclosure
If you are facing foreclosure, chapter 13 bankruptcy in Minnesota may be the most practical option for you to avoid this and keep your home. You will need to show the bankruptcy court that you have sufficient income from a reliable source that will enable you to pay up your mortgage in the specified time frame. You will once again need to provide a detailed repayment plan that spans over 3 to 5 years during which you should be able to on just enough disposable income that will pay up your mortgage as well as arrearage.
Hiring an Attorney for Chapter 13 Bankruptcy in Minnesota
Since the process of filing a chapter 13 bankruptcy is fairly complicated and involves a good deal of legal formalities, it is always a good idea to consult an experienced attorney regarding any questions you may have. A seasoned attorney who deals with similar cases every day can be of immense help when it comes to filing chapter 13 bankruptcy in Minnesota.