When filing for bankruptcy in Minneapolis, you have to choose between filing under Chapter 7 or Chapter13 of the Bankruptcy Code. Depending on your situation, a Chapter 13 filing may be the best option for you.
Benefits of Filing for Chapter 13 Bankruptcy in Minneapolis
Filing for Chapter 13 bankruptcy will enable you to come up with a court-approved repayment plan (which normally lasts three to five years) to pay off most of the accumulated debt. This plan is binding on both your side and the creditors’. Once this plan has been executed, the court will discharge you from any further liability accruing from most kinds of unsecured debt.
You should note that this discharge doesn’t extend to the following kinds of debt:
- Student loans
- Alimony and child support
- Certain types of damages
- Debts you failed to list
A Chapter 13 filing also gives you the benefit of the “automatic stay,” which forces creditors to stop all collection activities. “Automatic stay” prohibits creditors from demanding repayment via mail or phone, as well as things like eviction and disconnection of utilities.
Prevents Lenders from Foreclosing on Your Home
If you are a homeowner, filing Chapter 13 bankruptcy can be particularly advantageous since the automatic stay prevents lenders from foreclosing on the mortgaged home. It also allows you to pay off installments – whose due dates have passed – over a reasonable length of time.
However, for you to enjoy all these benefits, your bankruptcy filing must be successful, and this means hiring an attorney with extensive experience handling Chapter 13 cases.
To fully understand your options when it comes to filing for Chapter 13 bankruptcy, turn to the experienced lawyer at Hoverson Law Offices. We are here to help you start a new life, free from the burdens of crushing financial debt. Contact us today to request a quote or an initial consultation.