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If there is disposable income, or nonexempt
assets, or nondischargeable debt, or arrears on
secured debt, then
Chapter 13 may be
the better choice.
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Most cases that are filed are Chapter 7 cases. This is because most clients are truly strapped--they have no disposable income and they have assets that can be protected. Determining whether a client qualifies for a Chapter 7 requires a thorough examination of income, expenses, and assets. Some clients must pass a "means test" to determine eligibility for Chapter 7. If there is disposable income, or nonexempt assets, or nondischargeable debt, or arrears on secured debt, then Chapter 13 may be the better choice.
Generally a Chapter 13 is necessary if:
There are past due payments on a house or a car and a client is threatened with foreclosure, a sheriff sale or a repossession. A Chapter 7 case will not protect a client from a creditor who wants to take collateral back because of nonpayment. A Chapter 13 case offers clients a second chance to keep a home or a car that would otherwise be lost. If you are facing a repossession, foreclosure or a sheriff sale you should call as soon as possible to discuss your options.
There are assets that would be lost if a Chapter 7 case was filed. An example would be a client who owns a boat free and clear that has a value of $5000.00 which cannot be exempted (however, depending on the facts, in many cases a boat worth $5000.00 could be exempted) . The client would pay a total of $5000.00 (plus attorney fees and trustee fees) with 36 to 60 monthly payments to the unsecured creditors in a Chapter 13 case. The client would not lose the boat since the value of the boat is being paid over time. This is a very simple example and the facts of any individual case must be carefully analyzed.
There is debt that is nondischargeable in a Chapter 7 case such as tax debt or child support arrears.
There is disposable income that disqualifies a client from filing Chapter 7.
There is a desire on the part of the client to pay some or all of his or her debt back.
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Call today to schedule a free initial consultation:
Phone: 651-454-0007 & 952-261-7348
Fax: 651-454-0006
Email: attorneylundquist@yahoo.com
3470 Washington Drive Suite 210
Eagan, MN 55122
Offices in:
Eagan, Woodbury, Eden Prairie, Brooklyn Center
Downtown Minneapolis, and Downtown Saint Paul
This Law Firm is a Debt Relief Agency.
We Help People File for Bankruptcy Relief Under the Bankruptcy Code.
The content of this web site is informational in nature. This information is not legal advice, and no attorney client relationship is created by the content of this web site. No one should use this information as a substitute for legal representation. If you seek legal representation or advice you should contact an attorney in your state.
minnesota, lawyer, attorney, expert, specialist, chapter 7, chapter 13, bankruptcy, fresh start, garnish, garnishment, foreclose, foreclosure, bill collector, collection, sheriff' sale, minneapolis, saint paul, dakota, ramsey, hennepin
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