Managing debt can be a challenging and stressful experience, but for residents of Robbinsdale, MN, Chapter 13 bankruptcy offers a structured path to regain financial stability. At Hoverson Law Offices, P.A., we are dedicated to assisting you through this complex process, providing the guidance and support you need to reorganize your debts and secure a more stable financial future.
Understanding Chapter 13 Bankruptcy
Chapter 13 bankruptcy, often known as a “wage earner’s plan,” allows individuals with a regular income to create a plan to repay all or part of their debts over a period of three to five years. Unlike Chapter 7 bankruptcy, which liquidates assets to pay off creditors, Chapter 13 enables you to keep your property and pay off your debts in a more manageable way.
Key Benefits of Chapter 13 Bankruptcy
- Debt Reorganization: Chapter 13 bankruptcy allows you to consolidate your debts into a single, more manageable monthly payment. This can make it easier to keep track of your financial obligations and stay on top of your payments.
- Protection from Foreclosure: If you are behind on your mortgage payments, Chapter 13 can help you stop foreclosure proceedings and catch up on your arrears over time. This protection is crucial for those looking to keep their homes.
- Automatic Stay: Filing for Chapter 13 bankruptcy initiates an automatic stay, which halts most collection actions, including lawsuits, wage garnishments, and harassing phone calls from creditors. This provides immediate relief and allows you to focus on your repayment plan.
Qualifying for Chapter 13 Bankruptcy
To qualify for Chapter 13 bankruptcy, you must have a regular income that allows you to make payments under a repayment plan. Additionally, your unsecured debts must be less than $419,275, and secured debts must be less than $1,257,850. Our attorneys at Hoverson Law Offices, P.A. can help you determine your eligibility and guide you through the qualification process.
The Chapter 13 Bankruptcy Process
The Chapter 13 bankruptcy process involves several critical steps designed to ensure that your repayment plan is fair and achievable.
Step 1: Pre-Bankruptcy Credit Counseling
Before filing for Chapter 13 bankruptcy, you must complete a credit counseling course from an approved agency. This course will help you understand your financial situation and explore alternatives to bankruptcy.
Step 2: Filing the Petition
After completing the credit counseling course, you will file a bankruptcy petition with the court. This petition includes detailed information about your debts, assets, income, and expenses. Our experienced attorneys at Hoverson Law Offices, P.A. will assist you in preparing and filing this essential document.
Step 3: Automatic Stay
Upon filing the petition, the automatic stay goes into effect, providing immediate relief from most collection activities. This stay allows you to concentrate on developing a feasible repayment plan without the pressure of ongoing collection efforts.
Step 4: Creating the Repayment Plan
You will work with our attorneys to create a repayment plan that outlines how you will pay off your debts over three to five years. This plan must be approved by the court and must demonstrate that you can afford to make the proposed payments while covering your living expenses.
Step 5: Meeting of Creditors
Approximately 20 to 40 days after filing, you will attend a “341 meeting” or “meeting of creditors.” During this meeting, a bankruptcy trustee will review your petition and repayment plan, and creditors may ask questions about your financial situation. Our attorneys will be by your side to ensure you are well-prepared and that the meeting goes smoothly.
Step 6: Court Confirmation
If there are no objections, the court will confirm your repayment plan, and you will begin making payments to the trustee, who will distribute the funds to your creditors. Our attorneys will continue to support you throughout the repayment period, addressing any issues that may arise.
Choosing Hoverson Law Offices, P.A.
At Hoverson Law Offices, P.A., we are committed to providing personalized and compassionate legal services to residents of Robbinsdale, MN. Our experienced attorneys have a deep understanding of bankruptcy law and are dedicated to helping you achieve financial freedom.
Why Choose Us?
- Experience and Knowledge: Our attorneys have extensive experience handling Chapter 13 bankruptcy cases. We stay up-to-date with the latest legal developments to ensure that we provide you with the best possible representation.
- Personalized Approach: We understand that every client’s situation is unique. We take the time to listen to your concerns and tailor our services to meet your specific needs and goals.
- Compassionate Support: Filing for bankruptcy can be an emotional and stressful process. Our team is here to provide you with compassionate support and guidance every step of the way.
Additional Services
In addition to Chapter 13 bankruptcy, Hoverson Law Offices, P.A. offers a range of legal services to help you achieve financial stability, including:
- Chapter 7 Bankruptcy: For those who may not qualify for Chapter 13 or who need a different approach to debt relief, Chapter 7 bankruptcy offers a way to discharge unsecured debts and get a fresh start.
- Debt Settlement and Negotiation: We can help you negotiate with creditors to reduce your debt and create manageable payment plans.
- Credit Repair: After bankruptcy, we offer guidance on rebuilding your credit and achieving long-term financial health.
Contact Us Today
If you are struggling with debt and considering Chapter 13 bankruptcy, don’t wait to seek help. Contact Hoverson Law Offices, P.A. today to schedule a consultation. Our dedicated team is here to answer your questions, assess your financial situation, and help you determine the best path forward.
Serving Robbinsdale, MN
Hoverson Law Offices, P.A. proudly serves the residents of Robbinsdale, MN. We are committed to helping our community members achieve financial freedom and peace of mind through effective bankruptcy solutions.