If you find yourself working as hard as you can, but still unable to keep ahead of your debt, Chapter 13 bankruptcy may be the right choice for you. Chapter 13 may also be a good choice if you have significant equity in a home and want to be able to keep it. Chapter 13 offers wage-earners and small business owners the opportunity to restructure debt and pay it off over a period of time.
Because Chapter 13 is a longer process than Chapter 7--typically three to five years--it’s important to have an attorney with whom you are comfortable and who is responsive to your needs. At the Running Law Firm, our Minneapolis Chapter 13 bankruptcy attorneys make it a priority to listen to your needs, goals, and concerns, so we can provide the support you need throughout the bankruptcy process.
As with a Chapter 7 bankruptcy, the process starts with meeting with an attorney to prepare to gather information and fill out the bankruptcy schedules for filing. Once your case is filed, your attorneys will prepare a plan for repayment of your debt. You and your attorney will attend a meeting with the Chapter 13 bankruptcy trustee. There is also a confirmation hearing before a judge, but usually you are not required to attend that hearing. At that hearing, the judge will enter an order confirming (approving), the plan for repayment of your debts.
The entire Chapter 13 process takes three to five years, depending on your income and how much you owe. If you successfully complete the repayment plan, your remaining debt that is eligible for discharge will be wiped out. Three to five years is a long time, and things can happen, like a job loss, that make it impossible to complete the original plan. In that case, we will work with you to come up with an alternative, like requesting a modification of the plan or converting the case to a Chapter 7 bankruptcy.
No matter what happens during the course of your Chapter 13 bankruptcy, the attorneys at the Running Law Firm will work with you throughout the process, answering questions and helping to keep the process on track.
If you are interested in learning more about Chapter 13 bankruptcy, or other options for bringing your financial situation under control, contact the Running Law Firm for a consultation at 612-279-2660. We look forward to working with you.