Minnesotans are always amazed to find out that there really is a government sponsored debt consolidation plan. Most Minnesotans are not aware of this. If you live in St Paul, Minnesota and you are suffering from overwhelming debt and you are currently in a traditional debt consolidation plan, you are wasting your time. You read this right, you are wasting your time. Why? Because the government sponsored debt consolidation plan is much better for you and your family.
There are three things that make the government sponsored debt consolidation plan better than doing traditional debt consolidation.
- YOUR PAYMENT IS BASED ON WHAT YOU CAN AFFORD TO PAY
In the government sponsored debt consolidation plan, your payments are based on what you can afford to pay not what creditors want you to pay. So, in the government plan, you and your lawyer look at your income and expenses and determine what YOU can afford to pay.
- YOU PAY FOR 3-5 YEARS AND THE BALANCE OF REMAINING UNPAID DEBT GETS WIPED OUT
Let’s assume you have 100k in credit card debt. Let’s further assume you can afford to pay 300.00 per month for 36 months. That totals $10,800.00. That will not satisfy all your debts, far from it. In fact, $89,200.00 remains unpaid. What happens to this debt? It gets wiped out, forever!
- YOUR UNAPID DEBT GETS WIPED OUT TAX FREE!
Debts forgiven in a Title 11 bankruptcy, which Chapter 13 Bankruptcy is, is not taxable to you. So, the $89,200.00 get wiped out, tax free, forever! Now this is getting relief!
CONCLUSION
The government sponsored debt consolidation plan is called a Chapter 13 Bankruptcy. When the time is right, or when you are ready, call Minnesota’s oldest bankruptcy law firm at www.kainscott.com. You will be glad you did!
