What Is Chapter 13 Bankruptcy?

Chapter 13 is a type of bankruptcy that allows consumers to become free from debt. Unlike Chapter 7, which is relatively quick, Chapter 13 is a lengthier and more complicated process. It results in a repayment plan that lasts three to five years.

How Can Filing Chapter 13 Help?

As soon as you file bankruptcy, several things will happen. You won't get harassing phone calls or letters from creditors any more. If your wages are being garnished, that will stop. Any foreclosure proceedings or debt proceedings that are currently underway will halt. Essentially, you'll have time to breathe and to untangle your financial knots.

Then, through a repayment plan, you'll tackle the most important debts. Instead of trying to juggle multiple payments you can't afford, you will only have to make a single monthly payment that's financially feasible for your situation. At the end of the process, you'll be discharged from whatever qualifying debts are left over.

Why Consider Chapter 13?

Chapter 13 might be the answer if:

  • You have steady income.
  • You want to save your home from foreclosure.
  • You need to catch up on past due mortgage payments.
  • You have a second mortgage that's underwater.
  • You need to pay off an auto loan at a lower interest rate in a shorter amount of time.
  • You don't meet the income limitations to qualify for Chapter 7.

However, every situation is different. That's why it's so important to speak with a qualified attorney about your case. At Milavetz, Gallop & Milavetz, P.A., we can guide you through your options and help you make the right decision.

Find Out If Chapter 13 Is Right For You

Contact us at 612-444-5604 to discuss next steps. Our firm has convenient offices throughout the Minneapolis-Saint Paul metro, and our lawyers work with bankruptcy clients across Minnesota.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.