Many people who are considering filing for bankruptcy are afraid of losing any of their assets, but there is perhaps no greater fear than the fear of losing your house. If you have owned your home for a significant amount of time, it may be a greater emotional fear than losing other assets, as the memories you create in your home are intertwined with the property itself.
Minnesota residents who are considering filing Chapter 13 petitions may want to take note of two recent decisions that arose out of Chapter 13 bankruptcy cases. In both, the courts ruled that creditors holding old debt that was beyond the statute of limitations were able to file proof of claims with the bankruptcy court because the debtor did not object to the filing of the claims.
Debtors living in Minnesota may benefit from understanding more about obligations mandated by undertaking Chapter 13 bankruptcy. This form of bankruptcy is designed for debtors who have a regular income. These debtor are afforded three to five years to pay off all or a portion of what is owed. In order to qualify for Chapter 13 bankruptcy, debtors are required to develop a repayment plan that can be approved by a bankruptcy judge.
Minnesota residents who are considering filing personal bankruptcy probably have heard of the two most common forms for individuals, Chapters 7 and 13. They may be unaware of what the differences are between the two, however, or what the result of choosing to file under either chapter might be.
Although a Chapter 13 bankruptcy may eliminate some debts, others may remain. For instance, an individual who owes child support or student loans will generally still owe those debts after the case is over. Additionally, some debts related to criminal activities such as drunk driving may still be owed by the debtor after the case is resolved. Long-term debts such as a mortgage may also remain.
Minnesota homeowners who are considering filing for Chapter 13 bankruptcy may wonder how it will affect their mortgages. First, those who are struggling to keep current with their mortgage payments should contact their lenders in order to see if it may be possible to work out a payment plan.
In Minnesota, a Chapter 13 bankruptcy may be used to help debtors voluntarily reorganize their debts. This allows people to shrink their monthly payments and develop a plan to have the debts paid in full in a matter of just a few years. In addition to addressing concerns about credit card balances and other unsecured debts, a Chapter 13 may also be used to address amounts owed for federal income taxes. However, there are key limitations and requirements that people attempting to file should be aware of.
Although many individual debtors choose to file bankruptcy under Chapter 7 in Minnesota, Chapter 13 bankruptcy is available to some people who are over the income limits for Chapter 7 or who wish to keep certain types of secured property. Chapter 13 is also known as individual debt reorganization and has some advantages for those who are eligible to file under its rules.
Many Minnesota residents have experienced financial difficulties at some point in their lives, and for some, filing for bankruptcy may be a good option for dealing with debt that has become insurmountable. For those who file for bankruptcy, not all of their unsecured debts will be eligible for discharge. In a Chapter 13 bankruptcy proceeding, a person will have to wait at least three to five years before eligible unsecured debts are discharged. In a Chapter 7 bankruptcy proceeding, any unsecured financial debts will be discharged about four months after the court proceedings are complete.
People who are struggling with their debt in Ramsey, Minnesota may choose bankruptcy as a viable option to reduce debt and create manageable monthly payments. Eliminating interest payments and other expenses can ease the burden and give consumers better control over their finances. Not all debts can be discharged in a bankruptcy, and some have special requirements that debtors should be aware of.