Schreiber Law Office, LLC Richard M. Schreiber, Attorney
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MINNESOTA BANKRUPTCY LAW FIRM
ABOUT CHAPTER 13 BANKRUPTCY
A Chapter 13 bankruptcy works well for people who are behind on secured debts. Chapter 13 allows for the deficiencies on these debts to be paid back at an affordable rate. The same theory applies to people who owe money for child support and taxes. These debts can be paid over the course of up to 5 years through a Chapter 13, and government agencies such as the IRS and State of Minnesota are prevented from garnishing wages. Repayment is on your terms, not theirs. Chapter 13 is also an option for someone who does not qualify for Chapter 7 due to a high income. In some situations Chapter 13 allows individuals to remove, or “strip off” the second mortgage on a home, if the amount owed on the first mortgage is more than what the home is worth. Chapter 13 bankruptcy is also an option for people who are not eligible for a chapter 7 bankruptcy, such as individuals who have filed a previous chapter 7 in the last 8 years.  Also, in an uncommon situation where a person's property is not completely exempt in a chapter 7 bankruptcy, chapter 13 is a viable alternative. Filing for bankruptcy (Chapter 7 or 13) automatically stops creditors from collecting debts.  This is called the "automatic stay."  It means creditors must stop phone calls, letters, utility shut-offs, repossessions, foreclosures, and any other demands for payment, immediately once the bankruptcy is filed. The automatic stay is a very powerful tool.  It extends to most lawsuits, so if a creditor is taking you to court, this activity must stop immediately upon the filing of a bankruptcy petition.  If a creditor is in the process of garnishing wages or levying a bank account, this also must stop when a bankruptcy petition is filed.
To talk to an experienced attorney or schedule a free consultation:
(651) 554-0121
A Chapter 13 reorganization bankruptcy is quite similar to a debt consolidation, with the exception that the payment in a Chapter 13 is usually much lower than the repayment in a non-bankruptcy consolidation. Also, creditors do not need to be paid in full. You pay what you can afford to pay each month, and after the final payment is made the remaining balances are eliminated.  The length of a Chapter 13 plan ranges from 3 to 5 years.  In a Chapter 13, individuals make a monthly payment to the Chapter 13 Trustee, who in turn distributes the money to creditors.  If someone files a Chapter 13 bankruptcy and has secured debts like house or car payments, the payments on these loans can be kept outside the Chapter 13 plan if desired.
Phone & Zoom meetings also available
In a Chapter 7 bankruptcy, individuals are generally able to discharge their unsecured debts, which are debts without collateral. When a debt is discharged, it is eliminated and does not need to be paid back.  Common examples of unsecured debts include credit cards, medical bills and personal loans. Secured debts such as a mortgage or car payment must continue to be paid if the person desires to keep the property. Most, but not all debts, are discharged in a Chapter 7 bankruptcy (see below).   There are income guidelines to qualify for Chapter 7 bankruptcy.  The primary guideline to determine eligibility for Chapter 7 is your income compared to the state's median income (the "means test").  Please see the FAQ section of this web site for more information on the means test and Chapter 7 eligibility. Understandably, many folks worry that they may lose their property if they file for bankruptcy.  This is a common myth.  The bankruptcy code is written in a way to allow people who file for bankruptcy a fresh start from their debts while being able to keep the property they already own.  In fact, for the vast majority of bankruptcy cases filed no assets are lost. Not all debts are discharged in bankruptcy. Common Debts that are Non-Dischargeable:  Certain Debts Incurred Through a Divorce.    Certain Taxes Owed to the IRS or State of Minnesota.    Debts for Injury Caused While Driving Under the Influence of Alcohol.    Debts for Spousal Maintenance and Child Support.    Most Student Loans.   Also, if a substantial amount of purchases are made on a credit card right before a bankruptcy is filed, it is possible that the creditor may bring an action to declare that credit card debt non-dischargeable on the basis of fraud.
ABOUT CHAPTER 7 BANKRUPTCY
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Schreiber Law Office, LLC Richard M. Schreiber, Attorney
Minnesota Bankruptcy Law Firm
(651) 554-0121
FREE CONSULTATION AVAILABLE IN PERSON OR BY PHONE/ZOOM
CHAPTER 7 vs CHAPTER 13 ABOUT CHAPTER 7 BANKRUPTCY In a Chapter 7 bankruptcy, individuals are generally able to discharge their unsecured debts, which are debts without collateral. When a debt is discharged, it is eliminated and does not need to be paid back.  Common examples of unsecured debts include credit cards, medical bills and personal loans. Secured debts such as a mortgage or car payment must continue to be paid if the person desires to keep the property. Most, but not all debts, are discharged in a Chapter 7 bankruptcy (see below). There are income guidelines to qualify for Chapter 7 bankruptcy.  The primary guideline to determine eligibility for Chapter 7 is your income compared to the state's median income (the "means test").  Please see the FAQ section of this web site for more information on the means test and Chapter 7 eligibility. Understandably, many folks worry that they may lose their property if they file for bankruptcy.  This is a common myth.  The bankruptcy code is written in a way to allow people who file for bankruptcy a fresh start from their debts while being able to keep the property they already own.  In fact, for the vast majority of bankruptcy cases filed no assets are lost. Not all debts are discharged in bankruptcy. Common Debts that are Non- Dischargeable:  Certain Debts Incurred Through a Divorce.  Certain Taxes Owed to the IRS or State of Minnesota.  Debts for Injury Caused While Driving Under the Influence of Alcohol.  Debts for Spousal Maintenance and Child Support.  Most Student Loans. Also, if a substantial amount of purchases are made on a credit card right before a bankruptcy is filed, it is possible that the creditor may bring an action to declare that credit card debt non-dischargeable on the basis of fraud. ABOUT CHAPTER 13 BANKRUPTCY A Chapter 13 reorganization bankruptcy is quite similar to a debt consolidation, with the exception that the payment in a Chapter 13 is usually much lower than the repayment in a non-bankruptcy consolidation. Also, creditors do not need to be paid in full. You pay what you can afford to pay each month, and after the final payment is made the remaining balances are eliminated.  The length of a Chapter 13 plan ranges from 3 to 5 years.  In a Chapter 13, individuals make a monthly payment to the Chapter 13 Trustee, who in turn distributes the money to creditors.  If someone files a Chapter 13 bankruptcy and has secured debts like house or car payments, the payments on these loans can be kept outside the Chapter 13 plan if desired. If someone files a Chapter 13 bankruptcy and has secured debts not in default, the payments on these loans can be kept outside the Chapter 13 plan if desired. A Chapter 13 bankruptcy works well for people who are behind on secured debts. Chapter 13 allows for the deficiencies on these debts to be paid back at an affordable rate. The same theory applies to people who owe money for child support and taxes. These debts can be paid over the course of up to 5 years through a Chapter 13, and government agencies such as the IRS and State of Minnesota are prevented from garnishing wages. Repayment is on your terms, not theirs. Chapter 13 is also an option for someone who does not qualify for Chapter 7 due to a high income. In some situations Chapter 13 allows individuals to remove, or “strip off” the second mortgage on a home, if the amount owed on the first mortgage is more than what the home is worth. Chapter 13 bankruptcy is also an option for people who are not eligible for a chapter 7 bankruptcy, such as individuals who have filed a previous chapter 7 in the last 8 years.  Also, in an uncommon situation where a person's property is not completely exempt in a chapter 7 bankruptcy, chapter 13 is a viable alternative. Filing for bankruptcy (Chapter 7 or 13) automatically stops creditors from collecting debts.  This is called the "automatic stay."  It means creditors must stop phone calls, letters, utility shut-offs, repossessions, foreclosures, and any other demands for payment, immediately once the bankruptcy is filed. The automatic stay is a very powerful tool.  It extends to most lawsuits, so if a creditor is taking you to court, this activity must stop immediately upon the filing of a bankruptcy petition.  If a creditor is in the process of garnishing wages or levying a bank account, this also must stop when a bankruptcy petition is filed.
Schreiber Law Office, LLC Richard M. Schreiber, Attorney
Minnesota Bankruptcy Law Firm
(651) 554-0121
FREE CONSULTATION AVAILABLE IN PERSON OR BY PHONE/ZOOM
CHAPTER 7 vs CHAPTER 13 ABOUT CHAPTER 7 BANKRUPTCY In a Chapter 7 bankruptcy, individuals are generally able to discharge their unsecured debts, which are debts without collateral. When a debt is discharged, it is eliminated and does not need to be paid back.  Common examples of unsecured debts include credit cards, medical bills and personal loans. Secured debts such as a mortgage or car payment must continue to be paid if the person desires to keep the property. Most, but not all debts, are discharged in a Chapter 7 bankruptcy (see below). There are income guidelines to qualify for Chapter 7 bankruptcy.  The primary guideline to determine eligibility for Chapter 7 is your income compared to the state's median income (the "means test").  Please see the FAQ section of this web site for more information on the means test and Chapter 7 eligibility. Understandably, many folks worry that they may lose their property if they file for bankruptcy.  This is a common myth.  The bankruptcy code is written in a way to allow people who file for bankruptcy a fresh start from their debts while being able to keep the property they already own.  In fact, for the vast majority of bankruptcy cases filed no assets are lost. Not all debts are discharged in bankruptcy. Common Debts that are Non-Dischargeable:  Certain Debts Incurred Through a Divorce.  Certain Taxes Owed to the IRS or State of Minnesota.  Debts for Injury Caused While Driving Under the Influence of Alcohol.  Debts for Spousal Maintenance and Child Support.  Most Student Loans. Also, if a substantial amount of purchases are made on a credit card right before a bankruptcy is filed, it is possible that the creditor may bring an action to declare that credit card debt non- dischargeable on the basis of fraud. ABOUT CHAPTER 13 BANKRUPTCY A Chapter 13 reorganization bankruptcy is quite similar to a debt consolidation, with the exception that the payment in a Chapter 13 is usually much lower than the repayment in a non-bankruptcy consolidation. Also, creditors do not need to be paid in full. You pay what you can afford to pay each month, and after the final payment is made the remaining balances are eliminated.  The length of a Chapter 13 plan ranges from 3 to 5 years.  In a Chapter 13, individuals make a monthly payment to the Chapter 13 Trustee, who in turn distributes the money to creditors.  If someone files a Chapter 13 bankruptcy and has secured debts like house or car payments, the payments on these loans can be kept outside the Chapter 13 plan if desired. If someone files a Chapter 13 bankruptcy and has secured debts not in default, the payments on these loans can be kept outside the Chapter 13 plan if desired. A Chapter 13 bankruptcy works well for people who are behind on secured debts. Chapter 13 allows for the deficiencies on these debts to be paid back at an affordable rate. The same theory applies to people who owe money for child support and taxes. These debts can be paid over the course of up to 5 years through a Chapter 13, and government agencies such as the IRS and State of Minnesota are prevented from garnishing wages. Repayment is on your terms, not theirs. Chapter 13 is also an option for someone who does not qualify for Chapter 7 due to a high income. In some situations Chapter 13 allows individuals to remove, or “strip off” the second mortgage on a home, if the amount owed on the first mortgage is more than what the home is worth. Chapter 13 bankruptcy is also an option for people who are not eligible for a chapter 7 bankruptcy, such as individuals who have filed a previous chapter 7 in the last 8 years.  Also, in an uncommon situation where a person's property is not completely exempt in a chapter 7 bankruptcy, chapter 13 is a viable alternative. Filing for bankruptcy (Chapter 7 or 13) automatically stops creditors from collecting debts.  This is called the "automatic stay."  It means creditors must stop phone calls, letters, utility shut-offs, repossessions, foreclosures, and any other demands for payment, immediately once the bankruptcy is filed. The automatic stay is a very powerful tool.  It extends to most lawsuits, so if a creditor is taking you to court, this activity must stop immediately upon the filing of a bankruptcy petition.  If a creditor is in the process of garnishing wages or levying a bank account, this also must stop when a bankruptcy petition is filed.