Chapter 13 bankruptcy is the less-drastic alternative to Chapter 7 bankruptcy. It is an option that allows those struggling with debt and creditors to overcome these barriers without liquidating their assets. Instead of filing for complete liquidation, you are put on a debt payment plan that works with your current financial situation.

Chapter 13 Bankruptcy Details

Chapter 13 bankruptcy is typically referred to ‘reorganizing bankruptcy’ because it allows you to reorganize your finances and get out of debt as best as you can. With Chapter 13 bankruptcy, your debts will be consolidated into one lump sum and you will be put on a payment plan for three to five years. After this time, the remaining debt will be discharged, even if you have not paid it off in full. It is important to remember, however, that not all debts will be discharged under the Chapter 13 bankruptcy law. Although unsecured debts such as credit card debt, utility bills and medical expenses can be placed under the payment plan, child support, tax debt, fraud debt and student loans cannot. Furthermore, secured debt, such as your mortgage or car loan payments, cannot be discharged under Chapter 13 bankruptcy.

Why File for Chapter 13 Bankruptcy?

There are two big bonuses to filing Chapter 13 bankruptcy. The first is that those harassing creditors will be stopped immediately. You will not have to worry about creditors calling at all times in the day as soon as you file. Any garnishment of wages that you are facing will also stop which means you will actually have a chance to get ahead. Second of all, in most Chapter 13 bankruptcy cases, you will not lose anything you own. You will not have to sell anything.

Chapter 13 bankruptcy is a great alternative for those who are behind on their car payments or house payments and need some time to catch up. It is also good for those who do not want to go to the extremes of Chapter 7 bankruptcy but cannot seem to keep ahead on any payments. Chapter 13 bankruptcy could also be right for you if you have a steady source of income but still cannot stay ahead of your debt. Contact a Minneapolis chapter 13 bankruptcy lawyer to discuss your options and see if Chapter 13 bankruptcy is the best option for your financial situation.

The Chapter 13 bankruptcy process requires a lot of paperwork and a court hearing where a Minneapolis bankruptcy attorney must be present. The courts will decide on a payment plan that works for your situation based on your documentation and all wage garnishment and creditor harassment will end. You can expect the process to take up to 90 days but the creditors and garnishment of wages will stop as soon as your documentation reaches the Federal courts.

Contact a Minneapolis Bankruptcy Lawyer

Olson Law Firm has years of experience in bankruptcy cases and filings and thus can help you through this financial mess. Regardless of the reasons surrounding your bankruptcy, it is important to know that Chapter 13 bankruptcy is a viable option. For a free consultation regarding your bankruptcy options, contact Olson Law Firm today at 612-816-2322.