The median income for Ramsey County is the key element in bankruptcy that determines which chapter a consumer is eligible to file. These medians are $45,722 for individuals and $57,747 for families. Any consumer who wishes to file a chapter 13 bankruptcy claim must have an income that exceeds these medians based on their household definitions. This income is based on the six-month period prior to claim submission. Consumers who qualify and are ready to attempt this bankruptcy chapter should contact a Bankruptcy lawyer St. Paul MN. Browse website for more information.
Do You Qualify?
The basics of chapter 13 imply that not only does the consumer qualify based on their income, but they are additionally capable of entering into a repayment plan. The plan is generated through an attorney who has analyzed their debts and calculated their income. In this chapter, the consumer is required to pay a monthly payment through wage garnishment. They are further required to utilize any expendable income for paying off debts that were not listed within the bankruptcy claim.
The consumer is required to adhere to the stipulations of the claim based on the judge’s directions. For instance, if she or he is ordered to pay a predetermined amount each month towards unsecured debts, their trustee will monitor these actions to ensure compliance. Any deviation from the court order could incur adverse actions such as a dismissal of their bankruptcy claim altogether.
The trustee makes arrangements with the consumer’s employer to collect the monthly payment. At any time that the consumer fails to generate adequate income due to their own actions could also suffer the penalties of early discharge. The consumer must submit reports to this trustee associated with any payments utilized towards settlement of additional debts during at least the first three years of the bankruptcy case.
The court will discharge some debts to assist the consumer in settlement. For instance, low valued credit card debts that are in charge-off status could be discharged through the claim. This is allowed based on the insurance claim filed by the credit card company in which they were compensated for the loss. Consumers who wish to file chapter 13 should contact a Bankruptcy lawyer through the Lamey Law Firm St. Paul MN.
