Many people will assume that filing for bankruptcy means they are giving up their old life and starting completely new. This is actually not the case. In Chapter7 bankruptcy, you are ‘liquidating’ some of your valuables but you do not have to lose everything. However, for many of us, this is still a little too drastic for our needs. If you find that you are struggling to overcome your debt but do not want to file for liquidation bankruptcy, then Chapter 13 bankruptcy may be the solution you are looking for.

Understanding Chapter 13 Bankruptcy

Chapter 13 bankruptcy is a lot less drastic than Chapter 7. Instead of liquidating your debt, you are ‘reorganizing’ it. In a sense, Chapter 13 bankruptcy offers you the chance to pay off some of your debts on a suitable payment plan. Here are some of the facts about Chapter 13 bankruptcy:

• Chapter 13 bankruptcy is considered a repayment plan
• It is sometimes referred to as “reorganization” type of bankruptcy or “wage earners plan”
• Chapter 13 bankruptcy provides an alternative to those who cannot qualify for Chapter 7 bankruptcy or for those who do not want to file for Chapter 7
• Chapter 13 bankruptcy will consolidate your debts into one lump sum
• You will be put on a payment plan, as advised by the bankruptcy court, that lasts between three to five years
• Your payment plan time and amount will depend on your income and your financial situation
• After three to five years, your remaining debts will be discharged, regardless of whether you have paid them in full or not. However, some debts will not be discharged including child support, student loans, mortgage payments and other secured debts.
• Chapter 13 bankruptcy will stop all creditors and wage garnishment. This is referred to as “automatic stay.”
• In most Chapter 13 bankruptcy cases, you will not lose anything you own.

Is Chapter 13 Bankruptcy the Right Option for Me?

Chapter 13 bankruptcy may be best for your financial situation if you find yourself in any of the following:

• If you are behind on car payments or house payments and need some time to catch up
• If you are behind on other debt payments and need some time to catch up
• If you do not want to go to the extremes of Chapter 7 bankruptcy
• If you are tired of the creditors hounding you every second of the day
• If you do not want to lose valuable property and would prefer to work on a payment plan over time
• If you have a regular source of income but keep falling behind due to your debt

Contact Us Today For A Free Consultation

The best way to determine whether Chapter 13 bankruptcy is the solution you have been looking for is to contact a Minneapolis Chapter 13 bankruptcy attorney. At the Law Offices of Heimerl & Lammers, we can provide you with a free initial consultation to determine if Chapter 13 bankruptcy is your best solution. If you know you need to do something about your overwhelming debt, call us today and see how we can help.

Heimerl & Lammers practices in all eighty seven counties of Minnesota including, Hennepin County, Ramsey County, Scott County, Carver County, Washington County, Anoka County, Wright County, Sherburne County, Chisago County, Isanti County, Stearns County, Dakota County, Cass County, Blue Earth County, Olmsted County, Sibley County and St. Louis County.

We represent Minnesota Bankruptcy Law clients throughout the Twin Cities including Minneapolis, Champlin, Brooklyn Park, Brooklyn Center, Eden Prairie, Edina, Excelsior, Hopkins, Long Lake, Lino Lakes, Maple Plain, Minnetonka, Monticello, Mound, Osseo, Otsego, Rogers, Saint Bonifacius, Saint Paul, St Paul, Spring Park, St Louis Park, Wayzata, Woodbury, White Bear Lake, Plymouth, Maple Grove, Eagan, Eden Prairie, Burnsville, Bloomington, Buffalo and throughout Minnesota.