While we are still learning all the effects of the COVID-19 coronavirus, the far-reaching impact of this pandemic and related government shutdowns will continue to be discovered for years. Many people have been directly impacted and been laid off, furloughed, or otherwise had their hours and compensation cut. But the even wider reaching are the effects will be felt for years and across nearly every industry.
When your income streams take an unplanned hit or become uncertain, really the only thing people can do to account for this is to take a look at their expenses and see where money can be saved. There are many methods for reorganizing your debt and payment(s), however, the main problem is that the amount of your monthly payments is always based on how much debt you owe, and not necessarily what you can afford.
Using Chapter 13 Bankruptcy in MN
The exception to this rule is in Chapter 13 bankruptcy. A government sponsored / court ordered repayment plan, where the payments are based on what you can afford (i.e. your disposable income), instead of how much you owe. You make a flat monthly payment to a bankruptcy trustee, and then your Chapter 13 plan directs where that money is to go.
Chapter 13 bankruptcy truly offers you a fresh start in reorganizing your debts, insomuch as you get to choose whether to reject or assume contracts and leases and other obligations. We can adjust interest rates on secured debts, pay off priority debts such as taxes and domestic support, and otherwise set up a payment plan which puts you back in control.
Bankruptcy repayment plans are designed for people who wish to pay their creditors, but who cannot cover the ongoing payments on all the debt, or who have been making payments on debt for years and not made progress on reducing the balance.
CALL NOW FOR A FREE STRATEGY SESSION FROM A MN BANKRUPTCY LAWYER AT KAIN & SCOTT
Chapter 13 bankruptcy can get you immediate relief from your monthly payments, without opening you up to more risk. If you would like to know more reach out to Minnesota’s largest and nicest bankruptcy law firm, by going now to www.kainscott.com or give me a call at 1-800-551-3292. You will be thankful you did.
