Overview of Chapter 13 Bankruptcy in Minneapolis

Chapter 13 bankruptcy is sometimes referred to as the “wage earner’s plan” or “repayment plan” bankruptcy because this bankruptcy requires you to make payments on your debt. Unlike Chapter 7 bankruptcy, which eliminates debt, Chapter 13 uses your wages or income to repay some or all of your debt over time. This overview of Chapter 13 Bankruptcy in Minneapolis will help you understand how the process works and why consulting a lawyer is important.

How Chapter 13 Repayment Works

The repayments are made over a three to five-year period after the Chapter 13 bankruptcy is filed. During this time, you keep your assets while following a structured repayment plan approved by the court.

How Chapter 13 Differs from Chapter 7

Instead of eliminating debt as in a Chapter 7 Bankruptcy, Chapter 13 Bankruptcy uses your wages/income to repay creditors. This option may benefit individuals who do not qualify for Chapter 7 or who want to protect their assets while still addressing overwhelming debt.

Why You Need a Minnesota Bankruptcy Lawyer

An experienced Minnesota bankruptcy lawyer can help you understand the advantages and disadvantages of a Chapter 13 Bankruptcy for your specific situation. Most people find bankruptcy law confusing and complex. To ensure you receive the maximum protection afforded by a Chapter 13 bankruptcy, legal guidance is essential.

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Contact us today to book your free bankruptcy consultation. Our team will guide you through an overview of Chapter 13 Bankruptcy in Minneapolis so you understand your options and feel confident about the repayment process. An experienced attorney will ensure you receive the protections available under bankruptcy law and help you decide whether Chapter 13 is right for your financial future.