When you’re in debt, it can make you feel like the walls are closing in—struggling to pay your bills and keeping food on the table for your family. At Hoverson Law Offices, P.A., we know that many people find themselves in situations where they have trouble paying their debts. If this sounds like you, consider Chapter 13 bankruptcy.
We’re here to help you understand how filing for Chapter 13 bankruptcy will affect your finances so that you can decide whether or not this option is right for you.
How Does Chapter 13 Work?
Chapter 13 bankruptcy protection allows you to reorganize your debts and set up payments that are affordable for your family. It is a beneficial option if you want to keep your property but are struggling to pay off your debts. To qualify, you need to have a regular source of income and be able to pay at least part of your debt. Once you meet these requirements, you will enter into a repayment plan with your creditors that lasts three to five years.
During this period, you’ll need to make monthly payments on your debts—but the good news is that Chapter 13 allows you to keep certain assets and property so that you can continue to live comfortably while paying your obligations.
Is Chapter 13 Right for You?
When considering bankruptcy provisions, you may wonder whether Chapter 7 or Chapter 13 is more appropriate for your situation. Both types can help you get out of debt, but they do it in very different ways.
With Chapter 7, you can discharge (wipe out) your debts entirely with no repayment plan. You’ll still have to pay off any unpaid debts that aren’t discharged (such as child support or most student loans), but if you qualify for Chapter 7, you won’t have to pay back any other debts—you can get rid of them all.
There are several reasons why someone might choose to file for Chapter 13 instead of Chapter 7. If your house is in foreclosure and you want to keep your house, then Chapter 13 may be the best option for you.
Contact a Minnesota Chapter 13 Bankruptcy Attorney Today
If you’re unsure whether or not Chapter 13 is right for you, contact Hoverson Law Offices, P.A. We can help determine if this plan is suitable for your situation—and, if so, how best to implement it so that it works best in your favor.
Call us at (612) 349-2728 or fill out our contact form for more information.
We target Minneapolis, Bloomington, and the surrounding Minnesota communities.