How Does A Chapter 13 Case End?

Financial crises can affect even the most fiscally responsible people. Filing Chapter 13 bankruptcy reorganizes your debt in a way that makes it more manageable. Your payment plan is set up so that you pay what your monthly budget says you can afford to pay.

This type of bankruptcy requires you to agree to a plan that will allow you to make payments over a period of three to five years. A Chapter 13 bankruptcy in Minnesota prevents you from losing your home, car, or other valuable property if you continue to make payments to your creditors. Most debts fall into one of three categories in a chapter 13 plan: debts that are paid in full, like mortgage arrears on a home you are keeping; debts that get partial payment and the remaining balance is discharged, like credit cards and medical bills; and debts that get partial payment and the remaining balance is not discharged, like student loan debt.

What are the Next Steps After Debts are Paid?

In Minnesota Chapter 13 bankruptcy cases, sticking to the terms of the repayment agreement will release you from dischargeable debt at the end of the payment period.

However, not all debts are dischargeable. For example, remaining balances on back child support and alimony payments, fines for violating laws, and student loans will still be owed once your Chapter 13 case is discharged. Once you have made your final payment under your plan, the trustee who is responsible for distributing the payments you made will send a report to the judge showing how much you have paid to the trustee with an accounting of how the funds were distributed. Once the judge has reviewed the report, you have filed your certificate of completion for the mandatory financial management course, and you have filed your form with the court saying you are current on your child support obligation if you have one, the judge can sign your discharge order and your case is complete.

Seek Guidance From an Experienced Minnesota Bankruptcy Attorney

If you are experiencing financial hardship, contact the Law Offices of Martin and Hedervare PLLC. Using our combined 38 years of experience serving the Twin Cities, Minneapolis, and St. Paul communities, we will help find the right debt solution for you. Call our firm at ((651) 243-2974 or contact us online today to schedule your risk-free consultation.

Marie Martin
About the Author: Marie Martin
Marie F. Martin is an experienced bankruptcy attorney serving the Twin City area. She represents Minnesota families in bankruptcy court, and has handled thousands of Chapter 7 and Chapter 13 cases from beginning to end.