Filing for Chapter 13 bankruptcy gives many of our clients the chance to regain a sense of stability after their finances have gotten out of control. By reorganizing debts through a court-supervised repayment plan, you gain structure, protection, and a defined path toward financial recovery.
If you are concerned about saving your home or car in a Chapter 13 bankruptcy, you are not alone. Keep reading our guide to learn how an experienced Chapter 13 bankruptcy attorney from our law office can help you retain the assets you need to live and get to work.
How To Keep Your Home in a Chapter 13 Bankruptcy
At Walker & Walker, our attorneys understand the importance of providing a home for your family, and we know that the thought of having to move can be stressful, but there are options. Filing for bankruptcy will put an automatic stay on your mortgage holder’s foreclosure efforts, and it is possible to keep your home post-bankruptcy, as long as you meet certain criteria.
You must have a steady income and demonstrate that you have the financial means to make your monthly mortgage payment. But that is not all. After bankruptcy, you need to make up your missed payments. This step is typically accomplished through a three-to-five-year repayment plan.
Minnesota has a homestead exemption of up to $450,000 (per spouse) or 40 percent of your home’s market value. In a Chapter 13 bankruptcy, your attorney will evaluate your home’s equity and ensure the appropriate exemption is applied so your residence can be protected under the plan.
Is It Possible To Save My Car in a Chapter 13 Bankruptcy?
Yes, it is possible to keep your car, even after you file for Chapter 13 bankruptcy in Minnesota. If you are behind on your loan payments, you can catch up on your arrears over the next three to five years, based on your wage earner’s plan, in addition to making your current monthly payments. As long as you make all your payments as promised, your lender cannot repossess your vehicle.
If you purchased the car at least two and a half years ago, you can take advantage of a cramdown to reduce your car’s loan balance. The remaining balance can be reclassified to an unsecured status and discharged with the rest of your debt.
Contact a Chapter 13 Bankruptcy Law Office for Help Keeping Your Home or Car
At Walker & Walker, we know it is possible to save your home or car in a Chapter 13 bankruptcy. Our Minnesota-based attorneys are here to explain the process based on your unique circumstances.
Do not hesitate to contact our team today to learn more about how we can help you keep the assets that are important to you. We understand that unforeseen financial circumstances can arise, and you deserve to be treated fairly.