Minneapolis Chapter 13 Bankruptcy Eligibility

Chapter 13 bankruptcy can be a powerful tool for people who feel overwhelmed by debt. Bankruptcy is designed to give you a second chance when your debts unexpectedly rise to an unsustainable amount, usually due to unexpected medical bills or credit cards used for expensive emergencies. Instead of being crushed by bills, you create a manageable payment plan that lasts three to five years. At the end of the plan, remaining eligible debt is discharged, giving you the fresh start you deserve.

You must have a provable income to qualify, and your debts are capped for Minneapolis Chapter 13 bankruptcy eligibility. If you need a plan to get back on track financially, our experienced Chapter 13 bankruptcy attorneys at Walker & Walker will guide you through the process and help you take back control of your finances.

How Do You Know if You Are Eligible To File for Chapter 13 Bankruptcy?

Determining eligibility for Chapter 13 bankruptcy starts with working closely with an experienced attorney. Your attorney will help gather the necessary financial information and prepare your filing with the bankruptcy court. This paperwork includes details about your income, creditors, assets, monthly expenses, and the proposed repayment plan.

Chapter 13 allows you to reorganize your debts and make manageable payments over three to five years. That’s why the court needs to see that you have a reliable source of income to make timely payments. Income doesn’t have to come only from wages. It can also include:

Social Security, including disability payments
Pensions
Income from a spouse who is not a co-petitioner
Alimony and child support payments you receive
Welfare benefits
Unemployment benefits
Workers’ compensation payments

Before filing for Chapter 13, you must complete a U.S. Trustee-approved credit counseling session within six months of submitting your petition. This can be done online or over the phone, making it convenient for your schedule. The counseling helps ensure your proposed repayment plan meets Chapter 13 requirements.

It is also important to be current on federal and state income taxes for the four years before filing. If you have outstanding taxes, our Minneapolis bankruptcy attorneys can guide you through the steps to meet eligibility.

Our Minneapolis Chapter 13 bankruptcy attorneys at Walker & Walker will help you understand your eligibility, prepare your repayment plan, and navigate every step of the process. We make it clear, manageable, and supportive so you can take control of your financial future.

Debts Are Capped for Chapter 13 Petitioners

To qualify for Chapter 13 bankruptcy, there are limits on the amount of debt you can have. Current federal rules set a cap of $250,000 for unsecured debt and $750,000 for secured debt, whether you are filing individually or with a spouse. These limits apply to individuals with a steady income, with some exceptions, such as stock and commodity brokers.

Qualifying for Chapter 13 bankruptcy in Minneapolis has many factors, and our experienced attorneys at Walker & Walker will guide you through the process. We will review your financial situation, explain your options, and help you understand how Chapter 13 can provide a manageable path to debt relief.

Contact a Minneapolis Attorney To Discuss Your Eligibility for Chapter 13 Bankruptcy

The federal bankruptcy laws are designed to relieve the stress of overwhelming debt and give you a chance to manage it while maintaining a comfortable lifestyle. Chapter 13 bankruptcy allows you to restructure your debts into a manageable repayment plan, helping you regain control and make your financial life easier.

To schedule a free consultation and discuss Minneapolis Chapter 13 bankruptcy eligibility, including income requirements and debt limits, call our experienced lawyers at Walker & Walker. Bankruptcy cases are heard in federal court, and our team has a deep understanding of this process. Consulting with us could restore your peace of mind and allow you to move forward with your life.