Coming back from bankruptcy as a fully employed worker can feel as difficult and daunting as one dare imagine. A lack of time outside of work, the stress of managing daily life or a family, and the logistics of financial stress can keep you running in place perpetually. The benefits of Chapter 13 bankruptcy are how it allows you to press pause on your debt and create a plan that will give you the space you need to make a full financial recovery. Our Owatonna, MN team at the Behm Law Group can help you navigate your way up the hill and beyond into a relieving new year.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is also known as wage-earner bankruptcy or a “wage-earner plan,” as it can only be claimed by individuals with a consistent income. This may be income from social security, full-time employment, or other sources, but it must be steady. A key part of this type of bankruptcy is how much flexibility plan development allows. You will work side by side with your Behm Law Group support team to create a plan that fits your financial abilities.
Lack of Interest Accrued
A major boon to declaring bankruptcy is that interest, late fees and penalties, which cause debts to be unmanageable outside of bankruptcy, are immediately terminated. Wage-earner bankruptcy can also stop foreclosure proceedings and prevent creditors from demanding higher payments than what the court, the chapter 13 trustee and your attorney determine are fair. After developing a payment plan, individuals will have between three to five years to make their predetermined payments.
The process of developing a monthly plan is coordinated between our lawyers and you. If you are looking for a bankruptcy recovery plan that can be precisely catered to your situation, wage-earner bankruptcy might be the solution you need.