Regaining Control of Your Finances
Through a Chapter 13 Bankruptcy
If you have a steady source of income and have not filed a Chapter 7 in the last four years or a Chapter 13 in the last two — this type of bankruptcy will give you time to reorganize your finances, while protecting you from creditor harassment, wage garnishments and other negative actions.
This "reorganizing" comes in the form of a debt repayment plan, which can be three years to five years in length and may include tax debts, past due mortgage payments and car loans even if you are delinquent on payments. Depending on your income and assets, you may only be required to pay a small portion of the debts you owe to unsecured creditors.
At Prescott & Pearson, P.A., our attorneys have focused solely on helping the people of Minnesota get a fresh start through the bankruptcy process since 1975. We're confident that we can help you too — even if it turns out that bankruptcy isn't the right solution for your needs. Call or contact us today for a free consultation and find out for yourself, what nearly 70,000 previous clients already know.
Bankruptcy fact: If you file under Chapter 13, your creditors will not be able to go after your co-debtors or co-signers for money that you owe.
Is Chapter 13 Bankruptcy Right for You?
There are many reasons why you might want to file for bankruptcy protection under Chapter 13 instead of Chapter 7. Here a few of the most common:
- You don't feel right about not paying your unsecured creditors back something
- You have too much nondischargeable debt, too much income or too many assets to file a Chapter 7 bankruptcy
- You want to keep your home but need time to make up the payments you've already missed
- You owe more money on your home than it's worth (usually due to second mortgages or home equity lines of credit)
- You want to keep your car
- You owe taxes that a Chapter 7 bankruptcy won't get rid of and you need time to pay the IRS back
- You have assets such as a second home that would most likely have to be liquidated in a Chapter 7 bankruptcy
For a broader overview of this topic, see our Chapter 13 Bankruptcy Information Center.
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For answers to any other questions about bankruptcy in general, or about your specific situation and concerns — don't hesitate to call or contact our lawyers in the Twin Cities area for a free consultation.
