This type of bankruptcy is very commonly referred to as the ‘fresh start’ bankruptcy. This type of bankruptcy wipes out most debt. Chapter 7 bankruptcy puts an immediate stop to all collections activity, including phone calls, billing, foreclosure, car repossession, and garnishment and levies.
A chapter 7 bankruptcy is available to people who are under the median income in Minnesota and therefore don’t have to repay any money to their credit cards, medical bills etc. It’s a bankruptcy that typically takes about 90 days from filing date to discharge. Most people that file a chapter 7 don’t lose any assets. Student loans and certain types of tax debt are not eligible to be discharged in a chapter 7, along with a few other types of debt.
Once the 90 or so days are up and you have received your discharge, (a court issued document that prevents your creditors from collecting on the debt) it’s time to move on with your life! This is the ideal time to begin to work on your credit, start budgeting and work on some savings goals.
This type of bankruptcy is a payment plan bankruptcy. It allows you to repay your creditors partially or in full. The payment term can be between 3-5 years.
This type of bankruptcy is available to people that make over the median income in Minnesota and don’t qualify for a chapter 7 bankruptcy. It’s also available to people with any type of income that have fallen behind on rent, mortgage or car payments or have tax debt to work out.
Most people do not pay their debt in full, they pay what they can afford to pay. This type of bankruptcy is very similar to debt consolidation programs, though with all the protections given by the federal courts. The chapter 13 plan is developed by Kain + Henehan and you.
The payment plan is not developed by the Judge or your creditors, it’s developed with your particular circumstances in mind. If the payment plan doesn’t work for you, it won’t work for anyone else either!
Your consultation can be completed virtually, via phone, or in person at one of our two offices in Eagan and St. Cloud.
We'll confirm and finalize your paperwork. Once you're ready, you'll sign off on your bankruptcy filing.
We submit your paperwork to the courts. At this point, all of the protections of a bankruptcy are in place. We only have one quick phone call or Zoom meeting to confirm your paperwork.
If you filed a Chapter 7, your debt will be discharged in about 3 months. If your case is a Chapter 13, your debt will be discharged in 3 to 5 years, according to the payment plan set in your case.