People tend to wrongly use the term bankruptcy as if it refers to a single outcome. In fact, some people enter this process in hopes of having much of their debt discharged, while others are only seeking help to adjust their payments and timeline so that they can catch up on what they owe. If you are struggling with debt that is out of control right now, but you ultimately intend to pay all of it off, you should seek out help with filing Chapter 13 bankruptcy St. Paul MN.
Chapter 13 is suitable for people who are going to be able to pay their debts ultimately and who have significant assets that they don’t want to give up as a part of filing under Chapter 7. For example, if you are behind in your mortgage at present but you want to retain the home, this is the right way to go. It can be used to put a stop to foreclosure temporarily to buy time, and also to create an opportunity to pay off previously missed mortgage payments. In some cases, it is also possible to remove a second mortgage from the home entirely. This happens in situations where the house is sufficiently underwater that there is no additional equity to cover the second loan, making it essentially an unsecured debt.
The payments that you will have to make depend on how much disposable income you have available to you. This is calculated based on how much is left after you pay the debts that can’t be dismissed in bankruptcy, plus a reasonable assumption for what you need to cover living expenses. The rest of your money is sent to the bankruptcy trustee. This person uses it to focus on paying off your secured debts first, and then pays whatever he can on other debts. This process continues for between three to five years, during which you have to be absolutely reliable in making your payments.
If you need help getting your debt under control, Chapter 13 bankruptcy St. Paul MN may be the right choice for you. You can see guidance more specific to your case and situation by contacting Lamey Law Firm and asking for a consultation. While there are general rules for how these cases work, the only way that you can have a clear idea about how the law applies to your own situation is to contact a legal professional.