Chapter 7 bankruptcy is often referred to as a “fresh start” bankruptcy. The reason is most (but not all) unsecured debts are discharged (i.e. eliminated) such as credit card debt, utility bills, medical bills, and loans.
The United States Bankruptcy Code sets the qualifications for who can file a Chapter 7 bankruptcy. They are:
Chapter 7 Costs: $375 – Includes filing fee, credit counseling courses and credit report. These costs must be paid prior to filing.
Chapter 13 bankruptcy is sometimes referred to as a “repayment” plan because debtors pay some or all of their unsecured debts (interest free) over a 3-5 year plan. Your payment is based on what you can afford to pay (income minus expenses).
There are a few specific eligibility requirements for filing in Minnesota. Generally, a debtor must have the ability to make a payment on a bankruptcy plan and your debt may not exceed:
Chapter 13 Attorney Fee: In Chapter 13 Bankruptcy the court sets our fees. For households that make less than the median income in Minnesota, the attorney fee for Chapter 13 Bankruptcy is $3,000.00. For households that make more than the median income, the attorney fee is $3,500.00.