Priority Debt in Chapter 13 Bankruptcy in Minneapolis

In Chapter 13 bankruptcy in Minneapolis, the type of debt you have plays a key role in how your repayment plan is structured, especially when it comes to priority debt in Chapter 13 Bankruptcy in Minneapolis. These obligations receive priority treatment and must be addressed in full during the three- to five-year reorganization process. Chapter 13 allows you to restructure your finances, pay priority debts according to the law, and still gain relief from unsecured debts such as credit cards or medical bills. At Walker & Walker, our talented Chapter 13 bankruptcy attorneys will guide you through each step, ensuring your repayment plan is both manageable and compliant with court requirements.

Different Types of Priority Debt

Priority debts are given priority under federal bankruptcy law and Minnesota statutes. Unlike unsecured debts, these obligations generally cannot be discharged and must be addressed during your plan. Common types of priority debt include:

• Child support and spousal support (alimony): These obligations must always be paid in full
• Certain tax debts: Recent income taxes and some other government obligations must be paid
• Secured debts: Mortgages and car loans are tied to collateral, which means you must stay current or risk losing the property
• Court-ordered obligations: Debts from criminal restitution or fines cannot be eliminated.

Our attorneys in Minneapolis will help you identify which debts fall into these categories and structure your plan so you remain on track throughout the bankruptcy process.

Can PriorityDebt Ever Be Discharged?

Some types of priority debt are never dischargeable. For example, spousal support and child support must always be paid, including any arrears that existed before filing.

There are limited exceptions for certain other debts:

• Secured property: If you no longer wish to keep property, such as a home or vehicle, you may surrender it in exchange for no longer owing the loan.
• Older tax debts: Some tax obligations may be discharged if they are more than three years old and were not linked to fraud.

Our team will review your situation and explain whether any of your obligations qualify for discharge under Chapter 13.

How Our Bankruptcy Lawyers Can Help

Managing priority debt can feel overwhelming, but Chapter 13 provides time and structure to make repayment more manageable. Our Minneapolis bankruptcy lawyers will:

• Build a repayment plan that addresses priority debts while keeping your budget realistic
• Protect assets tied to secured debts whenever possible
• Negotiate with creditors when needed
• Ensure compliance with court requirements to keep your case on track
• Seek modifications to your plan if your financial situation changes

With our guidance, you will remain compliant with the law, reduce stress, and avoid costly mistakes. We will help you take full advantage of the protections Chapter 13 provides.

Get Help With Priority Debt in Chapter 13 Bankruptcy in Minneapolis

If you are struggling with debt and need help creating a path forward, Walker & Walker is here to support you. We will prepare your filing, design a repayment plan that addresses your obligations, and guide you through the entire process.

Contact us today to schedule your free consultation and learn more about managing priority debt in Chapter 13 bankruptcy in Minneapolis while working toward a stable financial future.