A reaffirmation is an official way to “reobligate” yourself on the loan. This involves the lender sending us a reaffirmation contract to be signed by you.
Both chapter 7 and chapter 13 bankruptcies discharge your debts. Under a chapter 13 however, you propose a payment plan to the court to pay a portion of your debt. There is no required percentage of the debt that you must pay, instead the payment plan is based on your budget. There are a number of reasons to file a chapter 13 bankruptcy instead of a chapter 7 bankruptcy:
1. Qualification – to file chapter 7 bankruptcy, you must pass the means test or meet special circumstances. If you do not pass the means test, you will only be eligible for chapter 13 bankruptcy;
2. Non-dischargeable taxes – if you have a large amount of non-dischargeable taxes, the chapter 13 will stay interest and penalties from accruing on your tax debt and give you up to 5 years to pay the tax debts;
3. Cramdowns and lien stripping – under certain circumstances, you can “cramdown” the amount you pay on your auto loan to the value of the vehicle and treat the remaining balance as unsecured debt which does not have to be paid in full in a chapter 13. Likewise, if you have a second or third mortgage on your home and the value of your home is less than the balance of your first mortgage, you can strip the second (or third) mortgage and treat is as unsecured debt. When your chapter 13 plan is finished, the mortgage is removed from your home;
4. Stop foreclosure and bring your mortgage current.
If you’re behind on your mortgage and are nearing foreclosure, your last line of defense to keep your home is filing for Chapter 13 bankruptcy in MN. Chapter 13 is geared towards debtors who have a steady income that can support additional payments on top of their regular mortgage payment. Make sure you contact a bankruptcy attorney when filing bankruptcy chapter 13 in Minnesota. Atlas Law Firm has offices in Anoka, MN, Bloomington, MN, Minneapolis, MN, St. Louis Park, MN, Edina, MN and Minnetonka, MN, and we have been helping people file chapter 13 as well as chapter 7 for years.
Using the Chapter 13 Bankruptcy Procedures to Stop Foreclosure
When we file Chapter 13, the court will issue an “automatic stay”. This temporarily prevents the lenders from continuing their efforts to foreclose your mortgage. The automatic stay will continue in effect as your petition goes through the Chapter 13 bankruptcy process.
One of the prime Chapter 13 bankruptcy questions has to do with whether Chapter 13 prevents you from needing to make mortgage payments. It will not. Instead, the court negotiates a payment plan in addition to your regular mortgage that will get you to pay back a chunk of your missed payments over an extended period of time.
Why You Need a Chapter 13 Bankruptcy Attorney
While bankruptcy can be filed by anyone, the paperwork is complicated and time-consuming. Here at Atlas Law Firm, we have the experience you need and expect from Chapter 13 bankruptcy lawyers.
Our bankruptcy attorneys will work with you to ensure that your bankruptcy paperwork is done right.
Do Chapter 13 Bankruptcy Attorneys Really Make a Difference?
After your bankruptcy is filed, a trustee will be appointed to go over it. This trustee will go over every aspect of your paperwork to look for errors and other problems. Any errors can jeopardize the acceptance of your bankruptcy.
If the bankruptcy isn’t accepted, the foreclosure will proceed as planned. Hiring Atlas Law Firm in Minnesota as your bankruptcy attorney for Chapter 13 is a tiny investment compared with the possibility of incorrectly prepared paperwork.
Not All Chapter 13 Bankruptcy Attorneys Are Equal
With the experience provided by Atlas Law Firm, you will get top-notch legal service to ensure your bankruptcy goes smoothly. Our legal services are some of the best priced, making us a bargain compared to the competition.
When you hire legal help for your bankruptcy, Chapter 13 attorneys should allow you to rest easy knowing you are in good hands. If you fear foreclosure and want to discuss your options, we provide a free consultation. Here at Atlas Law Firm we specialize in bankruptcy and Chapter 13 attorney services.
Stop the harassing phone calls and start out on the path to save your home today!
To get answers to any questions you may have related to filing for bankruptcy in MN, speak to our bankruptcy lawyers and attorneys by calling today!
Chapter 13 is essentially a payment plan that you organize through the court system. Think of it as a consolidation loan with teeth.
There are 2 things you must do after your case is filed: (1) attend the meeting of creditors (aka the 341 hearing); and (2) complete a debtor’s education course via phone within 75 days from the date your case was filed. The 341 hearing is sometimes referred to as the meeting of creditors because your creditors can attend the meeting and ask you questions about the information contained in your petition.