Chapter 13 And Restructuring Your Debt

Chapter 13 bankruptcy is different from the more "clean slate" approach of Chapter 7. Often used by individuals who are employed and have certain median income level, this plan is based on restructuring a debt and paying it back over the course of three to five years using a court-approved payment plan. After that time, most of the remaining debt will be discharged. Regardless of your circumstances, our bankruptcy lawyers go through the entire process with our clients and are always available to provide support at hearings and answer your questions.

The Benefits Of Filing Chapter 13

As with Chapter 7 debt relief, there is a wide range of benefits to filing Chapter 13, including:

  • It stops creditor harassment
  • It can stop a foreclosure and allow individuals to catch up on mortgage payments
  • It can potentially eliminate second or third mortgage after discharge
  • It can potentially reduce the balance on a car loan
  • It stops lawsuits by creditors
  • It stops bank levies and wage garnishment
  • It enables you to keep more assets than Chapter 7, including luxury items
  • It discharges some debts, including those to credit cards, medical bills and personal loans
  • It discharges some tax obligations, which an attorney can help you determine
  • It has lower upfront attorney fees

What It Does Not Discharge

Some financial obligations that still must be met in Chapter 13 bankruptcy. These include:

  • Child support and alimony
  • Certain taxes
  • Debts resulting from causing someone's death or injury due to DUI
  • Fines, restitution or penalties owed because of sentencing for breaking the law

Contact Us To See If You Qualify For Chapter 13 Debt Relief

Call Hess & Jendro Law Office, P.A., in Elk River at 763-200-6626 or use our online intake form to schedule an appointment to learn more about Chapter 13 debt relief. We serve folks in the Twin Cities metro as well as the greater Central Minnesota. We are not here to judge you. We are here to help you find viable and legal financial solutions. The first step to your new start begins by contacting us.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.