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Creditor vs. Debtor: Getting More Out of Your Case with a Bankruptcy Attorney in Mankato, MN

Bankruptcy is designed to help individuals and businesses recover from debt and continue to participate in the global and national economy. While bankruptcy offers what’s essentially a government-sanctioned financial backup plan, it’s not a bailout to simply rid yourself of debts with no concern for your lenders. When you file for bankruptcy, the process will work to create a balanced outcome for you and your creditors. If you’re considering filing for bankruptcy, do it with the help of a Behm Law Group, Ltd. bankruptcy attorney in Mankato, MN to get the most out of your case.

Bankruptcy is a fair system, balanced in regards to your creditors and yourself, and it allows you benefit greatly from the process with the right approach and with the help of a skilled bankruptcy attorney.

 

Chapter 7

 If you qualify for Chapter 7 bankruptcy by passing the Means Test, the vast majority of your debts will be discharged, except for student loans, child support and alimony and certain tax debts.  However, even student loans, child support and alimony and certain tax debts can be discharged in certain circumstances.  If the total value of your assets exceeds the amount you can protect/keep with your applicable bankruptcy exemptions, the excess, non-exempt value will be distributed among your creditors.

  • Good for you: In this process, you get the benefits of debt discharge. Most of your debts including credit card debt, medical bills, old utility bills, bad checks, overdraft fees from bank accounts, debts from foreclosures and repossessions of vehicles will be discharged and you won’t have to worry about those debts again
  • Good for your creditors: Your creditors benefit from the liquidation of your non-exempt assets, which gives them a return on their loans they may not have received if you did not file for bankruptcy. In most cases, however, people do not lose any assets and all they lose are their creditors/debts.
  • How to do better: With the help of a Behm bankruptcy attorney, you can pick your way through this nuanced process. Our bankruptcy attorneys can help you work through choosing exemptions, filing a joint case with your spouse, protecting your bank accounts, working around foreclosure, and more.

 

Chapter 13

This process of bankruptcy works to reorganize your debts into a new repayment plan that spans three to five years.

  • Good for you: This process structures the repayment plan around your current income and expenses, so you won’t struggle to meet payments. You’ll also only have to repay your unsecured creditors a portion of what you owe (0%-100%)
  • Good for your creditors: Your secured creditors generally get repaid in full but at a lower interest rate in this plan, and while your unsecured creditors only receive a portion, they’ll still see a return of what they’re owed
  • How to do better: When you work with a Behm Law Group, Ltd. attorney to structure a repayment plan proposal, you have a better chance of fair unsecured debt repayment, flexibility in your payment plan over the years, and protection from creditor harassment

If you’re considering filing for bankruptcy, keep in mind that the process will maintain a balanced treatment for both you and your creditors. With the support and legal savvy of a Behm Law Group, Ltd. bankruptcy attorney in Mankato, MN, you can file a stronger, more successful case. Contact us at (507) 387-7200 to get started today.

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Most Recent Legal Changes that Affect How You File for Bankruptcy in Waseca, MN

Over the past 50 years, bankruptcy law has seen changes that have affected how individual consumer and business cases are handled today. The most recent overhaul in bankruptcy law came in 2005 when the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) was enacted to prevent the possibility of filers taking advantage of the system and to protect creditors involved. The BAPCPA played a significant role in shaping what we know as the current bankruptcy process.

While large changes like the 2005 bankruptcy act don’t happen frequently, there are little changes that come every few years that affect the way the court may approach a case and the way individuals and businesses can file. If you’re considering filing for bankruptcy in Waseca, MN, Behm Law Group, Ltd. offers the guidance and legal support you need to navigate the nuanced court system.

Some of the most recent changes to bankruptcy law were put into effect on the first of December in 2017. These alterations are minor in the overall framework of bankruptcy law, but they may still affect how your case is handled from start to finish.

  1. Chapter 13 Repayment: One change to bankruptcy law was made to the structure of how you file a Chapter 13 repayment plan. This change dictates that filers must use federal forms for a repayment plan, or local forms that comply with the amended federal rules (Rule 3015). This provides greater efficiency for creditors to review the proposed plan and streamlines how the court organizes your case information.
  2. Time Restrictions: Deadlines for plan objections and case confirmation hearings have changed in regard to Chapter 13 bankruptcy. The court now requires a notice within 21 days to object to a Chapter 13 plan confirmation (for creditors). An objection cannot be filed later than seven days before the confirmation hearing unless the court allows for an extension.
  3. Claim Amounts: While the amounts of secured and priority loan claims may not have altered overall, the way the court determines the amounts of those loans has. The court can now decide the claim amount even after it has been filed with motions and/or objections. That determination is binding for a secured claim holder even with a contrasting proof of claim. This alteration forces creditors to examine the proposed Chapter 13 plan of the debtor before agreeing.
  4. Proof of Claim: Under the 2017 amendments, your creditors must prove their claim of debt to be repaid in any type of bankruptcy. This includes filing the necessary documents for proof of claim within 70 days of your bankruptcy filing date. These claims must also include attachments that prove loan ownership including mortgage deeds, car titles, and other paperwork proving your responsibility to pay a secured loan.

These minor details may not be the most exciting part of a bankruptcy process, but they are important to understand in order to file your case without error. Contact Behm Law Group, Ltd. at (507) 387-7200 to learn more about filing for bankruptcy in Waseca, MN.

 

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Acquiring Business Credit During Chapter 13 Bankruptcy in St. Peter, MN

If you own a business and are struggling to meet payments on anything ranging from rent to utilities, you may benefit from taking advantage of the government-regulated system of bankruptcy. While it might seem like a big step to take, bankruptcy is designed to help businesses of all sizes into a full financial recovery. In fact, if you file for a Chapter 13 bankruptcy, your debts will be restructured into a manageable repayment plan for your business.

Not only is it possible to protect your business and the property involved when you choose to file for Chapter 13 bankruptcy, you may be able to continue expanding your business during the bankruptcy period. With the help of our attorneys at Behm Law Group, Ltd., you can keep your business afloat while you file for bankruptcy in St. Peter, MN.

 Filing for Chapter 13 Bankruptcy

Chapter 13 bankruptcy works to restructure your debts as a whole into a new repayment plan spanning a period of three to five years. Within this repayment plan your secured debts and priority debts must be repaid in full, but your unsecured debts will be restructured into the plan with only partial repayment required ranging from 0% to 100%.

 

Chapter 13 is a debt reorganization process available to both consumers and businesses, and while Chapter 11 is a similar reorganization process businesses can utilize, it is designed for very large businesses and is often impractical for individual consumers.  There are often greater benefits and more opportunities for full, long-lasting recovery when you choose Chapter 13 over 11.

 

One reason your business may thrive even through a repayment plan in Chapter 13 bankruptcy is because it’s possible to gain business credit, allowing for overall growth in your company.

 

Business Credit

 

Because even the most efficient businesses still incur debts through normal operations, especially when all disposable income in a Chapter 13 bankruptcy plan is used to repay unsecured creditors, you’re allowed to gain ordinary credit without needing approval from your trustee or authorization from the court. For example, if you own a bakery and need to buy a large inventory order of sugar and flour, you don’t need court approval to do so if you can pay for that shipment within 30-60 days.

 

However, if you gain credit outside the terms of ordinary business operations, you’ll need to receive court approval before making a purchase that’ll put your business in debt. In the example of the bakery, you’ll need court approval if you have to purchase a large appliance or vehicle necessary for normal business operations. To prove you can repay that item without it affecting your repayment plan, you have to:

  1. File a motion to authorize the purchase
  2. Explain to your trustee, creditors, and the court why that item is needed
  3. Demonstrate you can afford the item and still make payments on your plan

 

Gaining business credit during your repayment plan is an option that Chapter 13 bankruptcy often provides within reason and choosing this form of reorganization bankruptcy can allow your business to grow even through difficult times. To learn more about filing for a business bankruptcy in St. Peter, MN, contact Behm Law Group, Ltd. at (507) 387-7200 today.

 

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Successfully Getting Credit During Repayment of Chapter 13 Bankruptcy in Mankato, MN

 

Bankruptcy is often viewed as a last option for those with extreme debt and low income, but there’s more than one kind of bankruptcy available to individuals and businesses. Chapter 7 bankruptcy is the type of bankruptcy that fits the description that’s most often associated with being bankrupt due to the liquidation of the filer’s non-exempt assets. Chapter 13 bankruptcy, on the other hand, is a completely different process that works to reorganize a filer’s debts. If you’re struggling to meet debt payments but don’t want to possibly sacrifice non-exempt assets in a liquidation process, Behm Law Group, Ltd. can provide the legal support you need to file a strong case for Chapter 13 bankruptcy in Mankato, MN.

 

If your income to debt ratio is higher than the Minnesota median income for a household of your size, you cannot qualify for Chapter 7 bankruptcy. Even if your income is low enough to pass the Means Test, you may still choose to file for Chapter 13 bankruptcy and keep your estate intact. In this case, you’ll work with an attorney and trustee to draft a repayment plan that is suited to your situation.

 

A Chapter 13 bankruptcy repayment plan is a highly effective way for those struggling with debt to sort through their finances under the guidelines of a three to five-year bankruptcy period. Despite the many benefits of a repayment plan, however, the period it fills is a long time. During that three to five-year period, you might experience several life changes including anything from a new job to moving into a new home. Your repayment plan could be altered to accommodate those life changes, but there are occasions where you need to operate outside of your bankruptcy plan. One common example of this is when the filer is in need of getting a loan.

 

There are few reasons an individual working through a Chapter 13 bankruptcy repayment plan may need to seek a loan, and because of your overall financial history, your trustee may or may not approve any loans you try to obtain. However, there are times when you need a little boost, whether you’re starting a business that’ll gain more revenue in the long-term or if you have a real emergency.

 

Gaining credit during your repayment plan period depends on several factors:

 

  1. Whether you receive the required court authorization and trustee approval.
  2. The type of credit you’re attempting to obtain (consumer or business).
  3. How a new loan will alter your repayment plan.

 

Generally, you may be granted permission to obtain a loan based on household emergencies. Home repairs, medical emergencies, vehicle repairs, or disaster recovery are some primary examples.

 

If you’re working through a repayment plan or considering filing for bankruptcy in Mankato, MN, Behm Law Group, Ltd. can help. To learn more about the legal support and advice our attorneys offer, contact us at (507) 387-7200 today.

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Understanding a Hardship Discharge with Chapter 13 Bankruptcy in Luverne, MN

When you file for Chapter 13 bankruptcy, your debts will be restructured into a three to five-year repayment plan that fits your income and financial situation. For those with incomes too high to pass the Means Test or who wish to hold on to most of their nonexempt properties, Chapter 13 is a highly effective way to resolve debts and get a fresh financial start. Organizing your documents, files, forms, and information into a structured repayment plan proposal that the court will accept is a difficult task to manage without the help of a trained bankruptcy professional. Behm Law Group, Ltd. offers the legal support and assistance you need to file a strong case for Chapter 13 bankruptcy in Luverne, MN.

After you propose a Chapter 13 repayment plan that’s accepted by the court, the bankruptcy trustee administering your case will collect monthly payments that may vary based on the disposable income information you provide. The amount you’ll be required to repay in your plan depends on your creditors and your disposable income. For example, you must fully repay your priority unsecured creditors, such as certain tax debts, child support debts, alimony and court fines, while your unsecured creditors only need to be paid much less as determined by several factors. Changes may be made to your plan depending on other claims, income, and financial gains or losses. To prevent your case from being dismissed within your three to five-year repayment period, continued communication with your attorney and the bankruptcy trustee is key.

You may also find yourself facing unforeseen circumstances that make it impossible for you to complete your Chapter 13 repayment plan.

If you find yourself in these circumstances, you may be eligible for the Hardship Discharge. This discharge works similarly to a discharge granted in a Chapter 7 bankruptcy case.  You will no longer have to make a plan payment.  Like in a Chapter 7 case, certain debts, including unsecured debts like medical bills, credit card debts, and more, are discharged. However, priority debts like tax debts, child support debts and alimony are not subject to the Hardship Discharge.

Eligibility: To be eligible for the Hardship Discharge, you have to prove your conditions render you unable to continue with your repayment plan. If you’ve failed to meet repayment requirements for more than a month due to burdens that are out of your control (“for which you should not justly be held accountable”), you have the chance to make your case for a hardship discharge. You improve your chances of the court granting you a Hardship Discharge if you can prove your circumstances are permanent (physical disability, for example) and if you’ve already repaid to your unsecured creditors what they would have received if you’d filed for Chapter 7.

For more information about the Hardship Discharge and filing for Chapter 13 bankruptcy in Luverne, MN, contact Behm Law Group, Ltd. at

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Key Factors that Affect the Repayment Plan Structure of Bankruptcy in Windom, MN

Today, Chapter 7 is the most common form of bankruptcy for both individuals and businesses. Because the Chapter 7 process is only available to those with income-to-debt ratios lower than the Minnesota median, bankruptcy is often associated with unemployment or even financial ruin. However, bankruptcy is an option to people and businesses with a wide range of incomes and debts in the form of debt restructuring—Chapter 13 bankruptcy. Behm Law Group, Ltd. offers legal advice and guidance to help you decide which type of bankruptcy in Windom, MN, would be the most beneficial to your current financial situation.

 

If you have a stable job and your debts weigh heavily enough for you to consider bankruptcy, chances are you’ll gain the most out of a Chapter 13 case. Chapter 13 bankruptcy works to structure your debts into a 3 to 5-year repayment plan that’s suited to your income. The process is designed to give your creditors as much of a return on your debt as possible without crippling your finances or severely damaging your quality of life.

 

In a Chapter 13 repayment plan, your debts are broken down into several categories based on the priority claim those creditors have on repayment. First, secured creditors are generally the creditors with property secured through a promissory note and security agreement such as mortgages, car loans, or any other debt concerning a physical property. These creditors can be repaid in different ways during your Chapter 13 plan period. In some cases, you will continue to pay these creditors directly rather than through your bankruptcy plan.  For instance, if you have a mortgage with Wells Fargo and you are current with the mortgage payments, you would continue to pay that debt directly to Wells Fargo.  However, if you are delinquent with your mortgage payments, you can pay the mortgage delinquency back to Wells Fargo throughout the 36 to 60 months of your chapter 13 plan rather than all at once.  Of course, you would still have to continue making your regular monthly mortgage payments to Wells Fargo but the delinquency owed before your case was filed would be paid back by the chapter 13 trustee with the payments you make through your chapter 13 plan.  Second, priority debts involved in the bankruptcy process (bankruptcy fees, for example) must also be paid in full.

 

You’ll also be required to repay certain debts in full regardless of any type of plan period, income, or bankruptcy you file for. These commonly include child support and alimony, most tax debts, and debts from personal injury or death you caused while operating a vehicle while intoxicated.

 

The rest of your debts will be considered unsecured or nonpriority debts, and these may be paid at a determined portion from 0% to 100%. The amount you’ll be required to repay to unsecured creditors in your Chapter 13 plan varies based on your disposable income, the exemptions you can claim, and the minimum amount those creditors would receive if your assets were liquidated in a Chapter 7 bankruptcy.

 

Overall, the amount you repay all your creditors, including priority, secured, and unsecured, depends on several financial components. Your debts and other claims you owe that factor into a Chapter 13 plan include:

 

  1. Mortgage owed and arrears
  2. Other home loans and arrears
  3. Car loans owed and loan arrears
  4. Personal property loans
  5. Debts on other property loans
  6. Alimony and child support
  7. Priority tax debts
  8. Other priority debts
  9. Death or personal injury claims against you
  10. Administrative bankruptcy fees
  11. Attorney fees

 

Some debts, like medical bills and credit card debt, may even be discharged in a Chapter 13 bankruptcy repayment plan. For more information about creditors, repayment plans, and filing for Chapter 13 bankruptcy in Windom, MN, contact Behm Law Group, Ltd. at (507) 387-7200 today.

 

 

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Choosing Chapter 13 when You Qualify for Chapter 7 Bankruptcy in Mankato, MN

Financial recovery through the federal process of bankruptcy is a public option for all businesses and individuals, but there are eligibility standards for any bankruptcy case. If you want to file for liquidation bankruptcy, for example, you must pass the Means Test to qualify for a Chapter 7 petition. If you’re ineligible for Chapter 7, you can choose to file for debt reorganization (Chapter 13), but even that process has certain prerequisites. With the help of Behm Law Group, Ltd., you can determine which type of bankruptcy in Mankato, MN is best for your financial situation.

The two common types of bankruptcy for individuals are Chapter 13 and Chapter 7. The former reorganizes your debts into a manageable repayment plan for a three to five-year period. The latter liquidates non-exempt assets, distributing the value of those non-exempt assets to creditors and discharging your debts in return. Which type you file for depends on two things: your debt-to-income ratio (passing the Means Test or not) and your choice.

Your Choice

If you pass the Means Test and qualify for Chapter 7 bankruptcy, you’ll have the option to choose between Chapter 7 or Chapter 13. While there are occasionally financial circumstances that force filers to stick with Chapter 7 bankruptcy, it’s likely that you’ll have a choice. Behm attorneys can help you make this choice based on several factors of your situation:

  1. Nonexempt assets: Non-exempt assets are assets that have value in excess of your applicable bankruptcy exemptions or for which there are no bankruptcy exemptions that one can utilize to protect or keep them. These assets will be liquidated in a Chapter 7 case and the sale proceeds will be used to repay something to your creditors. If you want to keep non-exempt property, Chapter 13 is the right choice for you.   As long as you pay the value of those non-exempt assets to your creditors through a 36 to 60 month chapter 13 repayment plan, you can retain non-exempt assets that you would otherwise lose in a chapter 7 liquidation bankruptcy.
  2. Car loan: If you have debt on your motor vehicles, you could have those assets taken back by the creditors who have liens on them in a Chapter 7 bankruptcy. However, choosing a Chapter 13 repayment plan could allow you to repay your car loans over time and in a more manageable way and keep your credit in a more stable position.
  3. Mortgage: Similarly, you can have equity or value in your home protected by the Homestead Exemption in a Chapter 7 case but you may be behind with your mortgage payments. In a chapter 7 case and if you wanted to eventually avoid a foreclosure proceeding, you would likely have to pay back any delinquency in full to the mortgage lender in 30 to 60 days.  However, in a chapter 13 repayment plan, you could break that mortgage delinquency up and repay it over 36 to 60 months, avoid a foreclosure proceeding and retain your home property.  You may also be able to strip off or cram down any second or third mortgages in a Chapter 13 case.
  4. Priority debts: When you file for any type of bankruptcy there are a number of debts that fall into the “priority” category. These debts cannot be discharged in Chapter 7 liquidation, but they can be integrated into a Chapter 13 repayment plan and paid off. If you want to repay debts like child support and tax debt in a structured repayment plan, choose Chapter 13 over Chapter 7.

Both chapters have their own advantages depending on your situation. To find out which type of bankruptcy in Mankato, MN is right for you, contact Behm Law Group, Ltd. at (507) 387-7200 today.

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Breakdown of Payments to Unsecured Creditors for Chapter 13 Bankruptcy in Pipestone, MN

When you file for bankruptcy, the people or organizations you owe money to are broken down into several different types of creditors. Generally, these creditors are considered as priority, secured, and unsecured. Within these categories, there is a simple hierarchy: priority creditors are repaid in full, secured creditors are paid the value of their collateral after exemptions are taken into account or the collateral is surrendered back to them, and unsecured creditors are paid with varying amounts depending on your case. While these creditors are considered similarly in both Chapter 7 or Chapter 13 bankruptcy, the outcomes of their repayments are different. Behm Law Group, Ltd. offers expert counsel and support when you file for Chapter 13 bankruptcy in Pipestone, MN, to help you navigate through your creditors and case.

 

For most Chapter 7 cases, the creditors are treated based upon which debts can be discharged and which exemptions can be claimed. In a Chapter 13 bankruptcy, however, the creditors must be treated differently based on the types of debts and the significance of those agreements.

 

When a Chapter 13 case is filed, the end goal is to restructure the filer’s debts into an appropriate repayment plan. This plan provides for the full repayment of priority debts and the payment of the value of secured debts, but often offers the filer the benefit of partial repayment of unsecured debts. The creditors of unsecured debts are written into the repayment plan in two fundamental ways.

 

  1. The first basic requirement for the treatment of unsecured creditors in a Chapter 13 bankruptcy repayment plan is that they will be paid at least as much as they would if the filer had filed a Chapter 7 bankruptcy.
  2. Secondly, the filer must pay all disposable income – surplus income left over after reasonable and necessary living expenses are paid – to their unsecured creditors throughout the duration of their three to five-year repayment plan. This income amount may fluctuate throughout the plan period, and the chapter 13 plan must be updated to reflect these income changes.

 

The repayment plan period for any Chapter 13 bankruptcy case depends on the filer’s income. If your income is less than the Minnesota median of a household similar to your own, your plan will last three years. If your income is higher than the median, you must file a five-year plan. The amount you repay your unsecured creditors will also depend on how long your plan lasts. For example, if you owe an unsecured creditor $5,000 and your disposable income adds up to $100 a month, you will repay 72% of that debt in a three-year plan or repay 100% of that debt in a five-year plan. In some cases, you will repay 0% of an unsecured debt when you file for Chapter 13 bankruptcy.

 

What you repay your unsecured creditors in Chapter 13 will vary greatly depending on your income and your additional debt payments and expenses. For most filers, these debts will be alleviated at least in part. For more information about your unsecured creditors and filing for Chapter 13 bankruptcy in Pipestone, MN, contact Behm Law Group, Ltd. at (507) 387-7200 today.

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Health Risks of Financial Stress and How Filing for Bankruptcy in Fairmont, MN Could Save Your Life

In today’s world, we face a huge amount of daily stress. From taking care of family and friends to work responsibilities and more, we all have many roles to fill. With all the pressures of the average American adult, it can seem almost impossible to cram another burden on top of all the others. However, it’s common that most are also dealing with a wide range of financial difficulties. Ridding yourself of this unnecessary stress is a real possibility. With the help of Behm Law Group, Ltd. attorneys you can successfully file for bankruptcy in Fairmont, MN, and get the stress-free fresh start you need.

Debt is one of the heaviest loads we bear. It weighs heavily on our daily activities and also impacts our mental and emotional state. Any individual can struggle with the stress that debts bear on quality of life and happiness, whether they’re responsible for a large household or just themselves.

 

The stress we experience each day has more negative health effects, both mental and physical, than many realize. Chronic stress is a real causative factor in increasing a range of health risks including heart conditions, anxiety, depression, gastrointestinal problems, weight fluctuations, diabetes, psoriasis, eating disorders, insomnia, and even cancer. Substance abuse is another common problem often caused in part by chronic stress, which leads to a wide range of additional health problems.

 

If you’re dealing with the stress of severe financial difficulties or have had difficulty in keeping up with debt payments for several months, bankruptcy might be the answer to rid yourself of debt and stress.

 

If your income is lower than the state median, you can choose to file for Chapter 7 bankruptcy. This process works to liquidate your non-exempt assets, distributing the sale value to your creditors. In return, your debts are discharged, lifting the stress of that burden.  In most cases, no assets are sold/liquidated and the only things “lost” through the procedure are one’s debts.

 

Even if your income is a little higher than the state median, you can still choose to file for Chapter 13 bankruptcy. This allows you to restructure your debts into a 3 to 5-year repayment plan that suits your current income. In this process your debts will also be discharged and you will only be required to pay back a portion.

 

Considering the severity of stress that financial difficulties can cause, using bankruptcy as a way out might save you from damaging health issues. With the help of Behm Law Group, Ltd., you can find out which type of bankruptcy is right for you and file a successful bankruptcy petition. For more information about filing for bankruptcy in Fairmont, MN, contact us at (507) 387-7200 today.

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How Discharge Plays a Part When You File for Bankruptcy in Mankato, MN, More than Once

The purpose of the U.S. bankruptcy system is to relieve individuals and businesses from debts and protect creditors from severe losses. In a nutshell, this process is built to be balanced and fair for all parties involved. This also means that the nature of the bankruptcy system prevents filers or creditors from abusing the benefits that are offered through court regulations. Behm Law Group, Ltd. offers the legal advice and assistance you need to get the most out of filing for bankruptcy in Mankato, MN, while sticking to the nuanced rules and requirements of the court.

 

One of the sticking points for the bankruptcy court is when filers appear to be taking advantage of the system with multiple filings. It’s not unacceptable to file for bankruptcy more than once in your life, but when, why, and how you file multiple bankruptcy petitions depends on certain timelines and the failure to abide by those timelines can affect the outcome of your case.

 

To file a successful case and be eligible for a bankruptcy discharge, it’s important to understand the timeframe stipulations for each type of bankruptcy:

  1. Chapter 7 cases have to be filed eight years apart for one to be eligible for a discharge. This period starts on the date you file your most recent bankruptcy petition. For instance, if you filed for chapter 7 bankruptcy relief on January 2, 2011, you would need to wait until January 3, 2019 to file chapter 7 bankruptcy in order to qualify for another chapter 7 bankruptcy discharge.
  2. Chapter 13 cases can be filed much sooner. The period required to pass before you can re-file for Chapter 13 bankruptcy is only two years from the date you file your most recent petition. This means that you could potentially stay within a debt-restructuring bankruptcy plan interminably. Chapter 13 bankruptcy cases must last at least 3 years (they can last up to 5 years,) so you could file a chapter 13 bankruptcy case, get a discharge in 3 years and then file chapter 13 right away again.  For instance, if you filed for chapter 13 bankruptcy on January 2, 2015, your case would have concluded in January 2018 but you would have qualified to file for chapter 13 bankruptcy relief again as of January 3, 2017.

 

Because you can file for either Chapter 7 or Chapter 13 bankruptcy, you may experience multiple filings of each type. In these cases, the timeframes depend on which case came first:

  1. If you file for Chapter 7 first, you will face a waiting time of four years before you can file for Chapter 13, starting with your Chapter 7 petition date. For instance, if you filed for chapter 7 bankruptcy on January 2, 2015 and received a chapter 7 discharge, you would not be able to file a chapter 13 bankruptcy and qualify for a chapter 13 discharge until January 3, 2019.
  2. If you file for Chapter 13 first, you will generally have a waiting time of six years before you can file for Chapter 7 and qualify for a chapter 7 discharge. However, if you’ve fully repaid your unsecured creditors during your Chapter 13 repayment period, you may be able shorten the waiting time with permission from the court. You can also file within a shorter period if your chapter 13 case was in filed good faith, you represented your best effort in the payment plan, and you paid at least 70% of allowed unsecured claims.

 

If you’re considering filing for bankruptcy, we can help whether it’s your first time or not. Contact Behm Law Group, Ltd. at (507) 387-7200 for more information about our counsel and support for bankruptcy in Mankato, MN.