5 Major Components of Chapter 13 Bankruptcy In Roseville

The decision to file bankruptcy can be a difficult one and after the process of reviewing your finances and goals you will need to determine which type of bankruptcy is right for you. While chapter 7 bankruptcy completely eliminates the majority of our debts it is not always the best option for all of us. Some of us may not be able to meet the requirements to file chapter 7 bankruptcy and in these instances Chapter 13 can be an extremely effective tool for recovering from financial difficulty and regaining control over debts and obligations. Our staff of experienced Roseville MN Bankruptcy Attorneys are able to determine which type of bankruptcy is right for you and it is important you are aware that you have options. We will be discussing the steps involved with a chapter 13 bankruptcy so that you may familiarize yourself with the process and consider if a chapter 13 bankruptcy makes sense for you and your future.

Developing a Chapter 13 Repayment Plan

When you consult with our Roseville MN Bankruptcy Attorneys we will take a detailed inventory of your finances and debts so that we can properly evaluate your case. Assuming a Chapter 13 Bankruptcy is an ideal fit for your needs and you have already completed the required credit counseling course we can begin developing a basic premise for what your repayment plan may look like. Under Chapter 13 you will repay some or all of your debts. There are limits to the amount of secured and unsecured debt a debtor may carry in order to qualify for Chapter 13 eligibility but in the vast majority of our cases those seeking debt relief under Chapter 13 are able to meet these requirements. It is imperative we develop a reasonable repayment plan based on your income and finance so that our proposal will not be rejected; submitting repayment plans that are not practical or realistic unnecessarily complicate the filing process which is to come.

Determining Which Debts Need to be Paid First

At Kain & Scott in Roseville we will prepare your documents for review and filing with the court and develop the most manageable plan available to you so that you may begin to satisfy your financial obligations. Priority debts will need to be paid first such as tax debt and child or spousal support. If you are behind on your mortgage payment, your mortgage arrears will need to be paid. If you have a car loan, the entire loan can be paid through the Chapter 13 repayment plan. The money remaining in your payment will be divided among your unsecured debts, the fee for your attorney and the fee charged by the Chapter 13 trustee. Your unsecured debts are not backed by any collateral and you will not be required to pay these debts in full but rather show good faith in repaying them and pay all disposable income available towards them. Your repayment plan will likely cover a period of 3 to 5 years depending on what your income and expenses justify. Once our Roseville Attorneys have developed a plan we are confident you can manage it can be submitted to the courts for approval.

Attending the 341 Meeting of Creditors

You will be required to attend a conference known as the 341 Meeting of Creditors during which the Chapter 13 trustee assigned to your case will review what has been submitted and determine if you are ready for the court’s approval. Your creditors are also invited to attend and may also object to any item within the proposal they believe to be false or inaccurate; however this seldom takes place. The creditors most likely to attend will be those who hold claim to property or assets. The most common reason for one of these creditors to attend would be to verify your intent on secured debts or confirm they are remaining insured or cared for properly.

Getting Your Repayment Plan Confirmed

Your bankruptcy proposal will be reviewed by the court and the bankruptcy court judge will make a determination as to whether or not your plan satisfies all the requirements of the bankruptcy code. If the trustee, or your creditors do not object to your chapter 13 repayment plan, your plan will be confirmed by the bankruptcy judge without the need of you attending the confirmation hearing. If either the trustee or a creditor objects to the plan, your attorney will negotiate with the objecting party to satisfy the objection. In almost every case a resolution of the objection takes place without the need for a contested confirmation hearing; once the settlement takes place, the court will confirm a modified chapter 13 plan that satisfies the trustee and/or objecting creditor. In rare cases negotiation cannot resolve the objection and a judge decides if the plan should be confirmed. But in almost every case, a plan is confirmed without objection, or after a modified plan is submitted to meet the objection raised.

Receiving Your Discharge

When you have satisfied the terms of your approved repayment plan and completed the required budgeting and planning course you will receive a discharge order from the bankruptcy court. In order to receive a discharge,you will need to demonstrate to the court that you have maintained your accounts and met all of the terms set forth within your proposal. All secured debts and legal obligations must be current and paid at this time in order to assure the success of your discharge request. Chapter 13 can be a lengthy process but many trustees understand your situation and can be willing to work with you throughout the process.

Contact Our Roseville MN Bankruptcy Attorneys

Our highly skilled Roseville MN Bankruptcy Lawyers will be on hand to assist you with any aspect of the process you may need help with. At the end of it all you will find yourself back on stable ground with your finances and future. It would be our honor to help you through this difficult time so don’t hesitate, contact us today! 

Click Here For Driving Directions