Schreiber Law Office, LLC Richard M. Schreiber, Attorney
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MINNESOTA BANKRUPTCY LAW FIRM
ABOUT CHAPTER 13 BANKRUPTCY
If someone files a Chapter 13 bankruptcy and has secured debts not in default, the payments on these loans can be kept outside the Chapter 13 plan if desired. A Chapter 13 bankruptcy works well for people who are behind on secured debts. Chapter 13 allows for the deficiencies on these debts to be paid back at an affordable rate. The same theory applies to people who owe money for child support and taxes. These debts can be paid over the course of up to 5 years through a Chapter 13, and government agencies such as the IRS and State of Minnesota are prevented from garnishing wages. Repayment is on your terms, not theirs. Chapter 13 is also an option for someone who does not qualify for Chapter 7. In some situations Chapter 13 allows individuals to remove, or “strip off” the second mortgage on a home, if the amount owed on the first mortgage is more than what the home is worth. Chapter 13 bankruptcy is also an option for people who are not eligible for a chapter 7 bankruptcy, such as individuals who have filed a previous chapter 7 in the last 8 years.  Also, in an uncommon situation where a person's property is not completely exempt in a chapter 7 bankruptcy, chapter 13 is a viable alternative. Filing for bankruptcy (Chapter 7 or 13) automatically stops creditors from collecting debts.  This is called the "automatic stay."  It means creditors must stop phone calls, letters, utility shut-offs, repossessions, foreclosures, and any other demands for payment, immediately once the bankruptcy is filed. The automatic stay is a very powerful tool.  It extends to most lawsuits, so if a creditor is taking you to court, this activity must stop immediately upon the filing of a bankruptcy petition.  If a creditor is in the process of garnishing wages or levying a bank account, this also must stop when a bankruptcy petition is filed.
To ask a question or schedule a free consultation with an experienced attorney, call or email:
(651) 554-0121
A Chapter 13 reorganization bankruptcy is quite similar to a debt consolidation, with the exception that the payment in a Chapter 13 is usually much lower than the repayment in a non-bankruptcy consolidation. In a Chapter 13, individuals make a payment to the Chapter 13 Trustee, who in turn distributes the money to creditors according to the Chapter 13 plan. In most Chapter 13 cases, it is not required that the unsecured debts be paid in full. However, secured debts (such as mortgage arrears) and priority debts (such as taxes and child support) must be paid in full. The length of a Chapter 13 plan is from 3 to 5 years, and with a few exceptions, unsecured debts remaining after the last payment are discharged.
Schreiber Law Office, LLC Richard M. Schreiber, Attorney
A Chapter 13 reorganization bankruptcy is quite similar to a debt consolidation, with the exception that the payment in a Chapter 13 is usually much lower than the repayment in a non-bankruptcy consolidation. In a Chapter 13, individuals make a payment to the Chapter 13 Trustee, who in turn debts be paid in full. However, secured debts (such as mortgage arrears) and priority debts (such as taxes and child support) must be paid in full. The length of a Chapter 13 plan is from 3 to 5 years, and with a few exceptions, unsecured debts remaining after the last payment are discharged. If someone files a Chapter 13 bankruptcy and has secured debts not in default, the payments on these loans can be kept outside the Chapter 13 plan if desired. A Chapter 13 bankruptcy works well for people who are behind on secured debts. Chapter 13 allows for the deficiencies on these debts to be paid back at an affordable rate. The same theory applies to people who owe money for child support and taxes. These debts can be paid over the course of up to 5 years through a Chapter 13, and government agencies such as the IRS and State of Minnesota are prevented from garnishing wages. Repayment is on your terms, not theirs. Chapter 7. In some situations Chapter 13 allows individuals to remove, or “strip off” the second mortgage on a home, if the amount owed on the first mortgage is more than what the home is worth. Chapter 13 bankruptcy is also an option for people who are not eligible for a chapter 7 bankruptcy, such as individuals who have filed a previous chapter 7 in the last 8 years.  Also, in an uncommon situation where a person's property is not completely exempt in a chapter 7 bankruptcy, chapter 13 is a viable alternative. Filing for bankruptcy (Chapter 7 or 13) automatically stops creditors from collecting debts.  This is called the "automatic stay."  It means creditors must stop phone calls, letters, utility shut-offs, repossessions, foreclosures, and any other demands for payment, immediately once the bankruptcy is filed. The automatic stay is a very powerful tool.  It extends to most lawsuits, so if a creditor is taking you to court, this activity must stop immediately upon the filing of a bankruptcy petition.  If a creditor is in the process of garnishing wages or levying a bank account, this also must stop when a bankruptcy petition is filed.
Minnesota Bankruptcy Law Firm
FREE CONSULTATION AVAILABLE
(651) 554-0121
ABOUT CHAPTER 13 BANKRUPTCY                                                                            
distributes the money to creditors according to the Chapter 13 plan. In most Chapter 13 cases, it is not required that the unsecured
Chapter 13 is also an option for someone who does not qualify for
Schreiber Law Office, LLC Richard M. Schreiber, Attorney
Minnesota Bankruptcy Law Firm
(651) 554-0121
FREE CONSULTATION AVAILABLE
ABOUT CHAPTER 13 BANKRUPTCY                                                                            
A Chapter 13 reorganization bankruptcy is quite similar to a debt consolidation, with the exception that the payment in a Chapter 13 is usually much lower than the repayment in a non-bankruptcy consolidation. In a Chapter 13, individuals make a payment to the Chapter 13 Trustee, who in turn
distributes the money to creditors according to the Chapter 13 plan. In most Chapter 13 cases, it is not required that the unsecured
debts be paid in full. However, secured debts (such as mortgage arrears) and priority debts (such as taxes and child support) must be paid in full. The length of a Chapter 13 plan is from 3 to 5 years, and with a few exceptions, unsecured debts remaining after the last payment are discharged. If someone files a Chapter 13 bankruptcy and has secured debts not in default, the payments on these loans can be kept outside the Chapter 13 plan if desired. A Chapter 13 bankruptcy works well for people who are behind on secured debts. Chapter 13 allows for the deficiencies on these debts to be paid back at an affordable rate. The same theory applies to people who owe money for child support and taxes. These debts can be paid over the course of up to 5 years through a Chapter 13, and government agencies such as the IRS and State of Minnesota are prevented from garnishing wages. Repayment is on your terms, not theirs.
Chapter 13 is also an option for someone who does not qualify for Chapter 7.
In some situations Chapter 13 allows individuals to remove, or “strip off” the second mortgage on a home, if the amount owed on the first mortgage is more than what the home is worth. Chapter 13 bankruptcy is also an option for people who are not eligible for a chapter 7 bankruptcy, such as individuals who have filed a previous chapter 7 in the last 8 years.  Also, in an uncommon situation where a person's property is not completely exempt in a chapter 7 bankruptcy, chapter 13 is a viable alternative. Filing for bankruptcy (Chapter 7 or 13) automatically stops creditors from collecting debts.  This is called the "automatic stay."  It means creditors must stop phone calls, letters, utility shut-offs, repossessions, foreclosures, and any other demands for payment, immediately once the bankruptcy is filed. The automatic stay is a very powerful tool.  It extends to most lawsuits, so if a creditor is taking you to court, this activity must stop immediately upon the filing of a bankruptcy petition.  If a creditor is in the process of garnishing wages or levying a bank account, this also must stop when a bankruptcy petition is filed.