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If you’re struggling with overwhelming debt but want to keep your home, car, and other assets, Chapter 13 bankruptcy may provide the relief you need. Our St. Cloud Chapter 13 bankruptcy lawyers help individuals and families reorganize debt, stop collections, and create a manageable repayment plan.
With experienced legal guidance from the team at Kain + Henehan, you can regain financial control and work toward a stable future. Our goal is to explain how Chapter 13 works, from repayment plans to legal protections, so you understand what to expect and how to prepare.
The process begins when you file a bankruptcy petition with the court. Your petition outlines your income, expenses, debts, and assets along with a proposed repayment plan. This plan demonstrates how you intend to repay creditors over a three to five-year period. This approach allows you to restructure your debts while keeping your property, which differs from what occurs under other bankruptcy chapters.
Once the court approves your repayment plan, you must follow it as ordered. You make scheduled payments while also covering ordinary living expenses. If your financial circumstances change, you need to notify the trustee and the court because those changes may affect your ability to pay.
Bill Kain and Margaret Henehan have over 60 years of combined bankruptcy experience and have helped hundreds of Minnesotans get back on their feet after getting weighed down by debt.
At Kain + Henehan, we love people. We never view your story as a source of shame or embarrassment. We truly care about our clients and want to help them live their best lives.
Bill and Margaret are respected among their peers and colleagues. Their positive relationships within the bankruptcy court system leads to positive outcomes for their clients.
When you file for Chapter 13 bankruptcy, you submit a proposed repayment plan along with financial documentation, including income, expenses, assets, and debts. The plan will:
Once approved, you must follow the plan while continuing to cover daily living expenses.
Life rarely moves in a straight line, and Chapter 13 recognizes that reality. If you cannot If you lose your job, suffer an illness, or face unexpected expenses, you can request a change to the repayment terms. The court may adjust the plan to reflect your current situation.
In St. Cloud, you must comply with both federal requirements and Minnesota’s exemptions. The U.S. Bankruptcy Court oversees your case, approves your repayment plan, and monitors the trustee’s distribution of funds.
Familiarity with these procedures makes the process less stressful. Knowing what the court expects from you, and what protections you gain, ensures you move through the process with confidence.
Filing a petition with the bankruptcy court serves as the first step. Your bankruptcy petition must show a complete and accurate picture of your finances, including income, expenses, property, and debts. Accuracy matters because mistakes or omissions may cause delays or dismissal. You also file your repayment plan at this time.
To qualify for Chapter 13, you must meet specific requirements, including:
If your debts exceed the limits or your income is unstable, other bankruptcy options may be more appropriate. We will review your finances carefully to confirm eligibility and help you choose the right path.
The means test puts your household income with the median income for families of the same size in Minnesota. If your income falls below the median, you qualify automatically. If it exceeds the median, you must prove that after allowable expenses you still lack the disposable income to pay debts outside a repayment plan.
The test ensures that those who file under Chapter 13 truly need this form of relief. Completing the test requires careful calculation of income and expenses. Passing it confirms that you qualify to move forward under Chapter 13.
Chapter 13 allows you to reorganize your debts under a single payment. Instead of juggling multiple creditors and varying due dates, you make one payment to the trustee. The trustee distributes those funds based on the terms of your plan.
Debt reorganization also provides opportunities to adjust repayment terms. You may reduce interest rates on certain debts, extend the repayment period, or restructure secured debts. These changes ease pressure on your budget and increase your ability to complete the plan successfully.
Your repayment plan must include both secured and unsecured debts. Mortgages, car loans, and tax debts receive priority treatment, while credit cards and medical bills fall into a separate category. By organizing debts this way, you create a clear framework that reflects your financial capacity and obligations. In many cases, you may extend repayment timelines or reduce interest.
Chapter 13 provides legal protections that affect your relationship with creditors. The automatic stay prevents creditors from suing you or attempting collection during your case. This protection creates space for cooperation instead of conflict.
Maintaining communication with creditors can also work to your advantage. In some cases, creditors may agree to modified terms if they see that you remain committed to completing your plan. These protections and cooperative measures make Chapter 13 a practical option for long-term debt recovery.
The automatic stay will immediately stop lawsuits, wage garnishments, repossessions, and other collection actions during banktrupcty. This protects both your income and property while you focus on working through your repayment plan.
For those facing foreclosure or vehicle repossession, the stay offers crucial relief. It prevents immediate loss and allows you to address arrears through your repayment plan. While some obligations such as child support may continue despite the stay, most other collection efforts stop, giving you valuable breathing room.
Every Chapter 13 bankruptcy case in Minnesota is different. If you work seasonal jobs or rely on variable income, you may need to provide detailed proof of your ability to keep up with payments. The court reviews this evidence carefully before approving your plan.
You must also attend a meeting of creditors, where you answer questions under oath from the trustee and any creditors present. While the process may feel intimidating, it serves as a standard requirement in bankruptcy cases. Preparation with your attorney ensures that you approach this meeting with confidence.
Certain debts remain after you complete Chapter 13. Student loans, child support, and most tax debts do not disappear. Recognizing these obligations helps you set realistic expectations for your financial recovery. If you own a business, Chapter 13 primarily addresses personal debts. Business-related obligations may fall outside the scope of the plan.
Before filing, you will need to complete a credit counseling session with an approved agency. The session reviews your finances and explains alternatives. It ensures that you make an informed decision before moving forward.
Legal support also provides value. A St. Cloud bankruptcy attorney prepares your bankruptcy petition for you, represents you in hearings, and ensures full compliance with all federal and state bankruptcy court rules. This prevents mistakes and delays while improving the chance of approval.
Our law office handles Chapter 13 cases regularly, which allows us to anticipate obstacles and address them effectively. We prepare and file your petition, represent you in creditor meetings, and ensure that your repayment plan aligns with both court requirements and your financial reality. With the right legal support, you place yourself in a stronger position to complete Chapter 13 successfully.
If you face financial pressure and want to seek financial relief by filing Chapter 13 bankruptcy in Minnesota, our St. Cloud attorneys are ready to help you. We bring with us the knowledge of bankruptcy law, experience with local St. Cloud courts, and a commitment to your financial recovery. Contact Kain + Henehan by calling (612) 438-8006 or filling out the online form to discuss your case during a free consultation.
Outstanding, absolutely outstanding. . . My only regret is that I did not pursue representation for my case sooner. I cannot speak highly enough of this firm and their services.
Outstanding, absolutely outstanding. . . My only regret is that I did not pursue representation for my case sooner. I cannot speak highly enough of this firm and their services.
Outstanding, absolutely outstanding. . . My only regret is that I did not pursue representation for my case sooner. I cannot speak highly enough of this firm and their services.