Features of Chapter 13 Bankruptcy in Minneapolis

Chapter 13 bankruptcy gives you a structured way to manage overwhelming debt while protecting your assets. Unlike Chapter 7 bankruptcy, which is designed to eliminate unsecured debt more quickly, Chapter 13 focuses on reorganizing your finances through a court-approved repayment plan that lasts three to five years. The key features of Chapter 13 bankruptcy in Minneapolis include the ability to catch up on missed mortgage or car payments, address priority debts such as child support or taxes, and manage unsecured debts through a court-approved repayment plan. Another important feature is the automatic stay, which immediately stops collection efforts and protects you from creditor harassment. This gives you the time and legal safeguards you need to regain financial stability. At Walker & Walker, our experienced Chapter 13 bankruptcy attorneys will guide you through the process and help you make the most of these protections.

Who Can Qualify for Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is available to many individuals in Minneapolis, particularly those with higher incomes who do not meet the requirements for Chapter 7. To qualify, you must meet certain conditions, including:

Regular income: You need a steady source of income, such as wages, self-employment, Social Security, or other reliable income, to make plan payments
Debt limits: Your combined secured and unsecured debts must fall below the debt limit set by the Bankruptcy Code
Filing status: Chapter 13 is available to individuals and married couples filing jointly, including those who are self-employed or operating a business as a sole proprietor. Businesses themselves cannot file under Chapter 13.
Tax filings: You do not need to be fully current on taxes, but you must have filed the required federal and state tax returns, typically for the last four years.
No recent dismissals: If a prior bankruptcy was dismissed within the last 180 days, you may not be eligible

You must also show that you have enough disposable income left after paying for necessary living expenses to make regular plan payments. Our bankruptcy attorneys in Minneapolis will review your eligibility and help you determine whether Chapter 13 is the best option for your situation.

What Is a Repayment Plan in Chapter 13 Bankruptcy?

Your repayment plan is the foundation of Chapter 13. Instead of receiving an immediate discharge like in Chapter 7, you make payments over three to five years. These payments are sent to the bankruptcy trustee, who then distributes funds to your creditors according to the court-approved plan.

Our attorneys will work with you to create a repayment schedule that fits your income and obligations, while making sure you comply with court requirements. This structured approach allows you to manage your debts gradually and keep essential property along the way.

Can You Keep Your Property in Chapter 13 Bankruptcy?

One of the most important advantages of Chapter 13 is that you can keep your personal property while paying down your debt. Unlike Chapter 7, where some nonexempt property may be sold, Chapter 13 allows you to reorganize your debts without losing assets.

This means you can stay in your home, keep your car, and maintain other essentials as long as you stay current with the repayment plan. At Walker & Walker, we will help you protect what matters most while finding a practical way forward.

Is Debt Discharged at the End of Chapter 13 Bankruptcy?

When you successfully complete your repayment plan, many remaining unsecured debts may be discharged, giving you the fresh financial start you have been working toward.

Debts that typically are not discharged include:

Child support
Spousal support
Certain taxes
Secured debts tied to the property you choose to keep

However, some student loans may be eligible for discharge through an additional legal process after filing. Our attorneys can review your situation and explain whether this option applies to you.

Learn More About the Features of Chapter 13 Bankruptcy in Minneapolis

If you are overwhelmed by debt but want to protect your home, car, and other assets, Chapter 13 may be the right choice. At Walker & Walker, we will explain the features of Chapter 13 bankruptcy in Minneapolis, prepare your repayment plan, and stand by you throughout the process.