Guidelines for Filing Chapter 13 in Minnesota

By Heather Frances J.D.

Personal bankruptcy can help Minnesotans with heavy debt loads get some relief and a financial fresh start. Most aspects of Chapter 13 bankruptcy proceedings are governed by federal bankruptcy rules rather than Minnesota state law, but some areas of bankruptcy are state-specific, such as where you must file your petition and which exemptions apply to your case.

Personal bankruptcy can help Minnesotans with heavy debt loads get some relief and a financial fresh start. Most aspects of Chapter 13 bankruptcy proceedings are governed by federal bankruptcy rules rather than Minnesota state law, but some areas of bankruptcy are state-specific, such as where you must file your petition and which exemptions apply to your case.

Chapter 13

Chapter 13 is a form of personal bankruptcy that involves reorganization of your debt under the terms of a three- to five-year repayment plan. Unlike Chapter 7 bankruptcy in which most debts are wiped out, Chapter 13 filers must make payments on their debts over the course of the repayment plan; debts remaining at the end of the repayment period may be wiped out if they have not been fully paid. Thus, Chapter 13 allows filers to keep their property, catch up on mortgage payments and even halt the foreclosure process on a home. The repayment plan is central to a Chapter 13 case, which may take up to five years to complete.

Get a free, confidential bankruptcy evaluation. Learn More

Filing Chapter 13

Before you file for bankruptcy in Minnesota, you must attend an approved pre-bankruptcy credit counseling course. Bankruptcy cases are handled by federal bankruptcy courts, so you must file your petition in the U.S. Bankruptcy Court for the District of Minnesota. This court has offices in Duluth, Fergus Falls, Minneapolis and St. Paul. To begin your case, you must submit a petition and several other required forms, proposed repayment plan and filing fee.

Trustees

A court-appointed bankruptcy trustee manages your Chapter 13 case. He evaluates your proposed repayment plan by reviewing the forms you file, which list your creditors, assets, income and expenditures. The trustee has the authority to object to your proposed repayment plan. He will hold a “341 meeting" -- a meeting with you and your creditors -- to discuss your proposed repayment plan. At this meeting, creditors have a chance to ask you questions, but frequently do not attend.

Exemptions

Bankruptcy exemptions remove certain property and assets from sale in a Chapter 7 proceeding, but in a Chapter 13 case, the bankruptcy court also uses them to determine how much money you have available to pay certain creditors. Minnesota law allows you to choose either Minnesota’s exemptions or the exemptions available under federal law -- but not both. Minnesota’s exemptions tend to be more generous than the federal exemptions and include a certain amount of equity in your home, vehicles, clothing, furniture, appliances, books and other personal property.

Get a free, confidential bankruptcy evaluation. Learn More
How to Declare Bankruptcy in Illinois

References

Related articles

South Carolina Bankrupty Laws

South Carolina residents who are burdened with debt can get a clean slate financially by filing for bankruptcy at the United States Bankruptcy Court for the District of South Carolina, located in Columbia. While federal law governs bankruptcy, certain aspects of the bankruptcy process are state-specific. An attorney or online legal services provider can help you file under either Chapter 7 or Chapter 13 of the bankruptcy code.

How to File Chapter 13 in New Hampshire

Chapter 13 bankruptcy can help you, as a debtor, prevent home foreclosure, make up missed car or mortgage payments, and pay back taxes. It can also stop the interest from accruing on your tax debts -- including local, state and federal taxes -- while allowing you to keep certain valuable property. Bankruptcy is governed by federal laws, but certain aspects are unique to New Hampshire. For example, New Hampshire residents must file their bankruptcy cases in the U.S. Bankruptcy Court for the District of New Hampshire, located in Manchester.

Bankruptcy Exemption Requirements

If your debts are out of control and you have little hope of catching up on the bills, you have the option to file for bankruptcy protection. The federal bankruptcy code allows you to file under Chapter 7 or Chapter 13 of the code. In a Chapter 7 bankruptcy filing, a court-appointed trustee seizes your non-exempt property to repay your debts. In a Chapter 13 filing, the trustee sets a repayment schedule, and you are allowed to keep your property. Exemptions are an important consideration in both forms of bankruptcy.

Related articles

New Jersey Chapter 13 Rules

Bankruptcy offers filers a chance to get back on their feet financially, paying off some debts and erasing others, ...

What Can You Keep in a Connecticut Bankruptcy?

Depending on the type of bankruptcy you file and the types of assets you have, you may be able to keep many of your ...

Rules for Declaring Bankruptcy in Kansas

When a Kansas resident wants a clean financial slate, he may file for bankruptcy protection under Chapter 7 or Chapter ...

Steps for a Bankruptcy in Colorado

Bankruptcy gives a debtor a fresh start by helping him dig out from a debt hole. There are several types of bankruptcy ...

Browse by category