St. Paul Chapter 13 Bankruptcy Lawyer

Debt Re-Organization Attorney | Serving Oakdake, Woodbury, Maplewood

Chapter 13 bankruptcy is typically referred to as reorganization bankruptcy, and is very different from Chapter 7 bankruptcy, where all of your debt is eliminated. In Chapter 13, your income is used to pay your debts (or a portion of your debts, depending on the Minnesota Bankruptcy Court's ruling), back to your creditors over time. This timeframe can be between three and five years. This is an important fact when considering Chapter 13, because you start to re-build your credit rating when your bankruptcy is complete. Therefore, you don't even start rebuilding your credit for at least 3 years from the time you file in a Chapter 13 bankruptcy.

In a Chapter 13 bankruptcy, there are ceilings, or limits to how much you can owe for you to remain eligible. Your secured debts cannot exceed roughly $900,000, and your unsecured debts cannot exceed roughly $300,000. Secured debt is where there is collateral for the loan (like a house or a car) and unsecured debt is where there is not (typically, hospital bills and credit cards are unsecured debt). Your income also plays into Chapter 13, as if it is too low, or too inconsistent, the bankruptcy court may deem you ineligible for Chapter 13.

Credit counseling from a bankruptcy court approved agency is a required before you can enter the Chapter 13 process. These agencies are typically not free, but reduced rates, based on your ability to pay are available. In some cases, your attorney may have a pre-negotiated deal with the credit counseling services where it is rolled in as part of your total attorneys' fees.

Upon completion of your credit counseling session(s), you will meet with the Minnesota Bankruptcy Trustee. You will need to bring proof of your completion of credit counseling, as well as detailed information on your income, liabilities, expenditures. You will also need to prove that you have filed federal and state tax returns for the past four years, and will need your federal tax return from the most recent year. All of this documentation serves as a guideline for your repayment plan, which a St. Paul Bankrupty Attorney can help you draft. The plan is subject to the court (Bankruptcy Trustee's) approval and the process also requires the (roughly) $300 filing fee.

The Law Office of Gregory Seamon, located in Oakdale, Minnesota helps clients in Maplewood, Woodbury, St. Paul, White Bear Lake, and Roseville in Bankruptcy (Chapter 7 and 13) and Family Law (divorce, custody, visitation, maintenance) issues.