I know what you are thinking- what government sponsored debt consolidation plan? Not many people know that the government, indeed, has a government sponsored debt consolidation plan. If people knew about this and understood it, no one would ever try traditional debt consolidation plans and always contact a St Paul Bankruptcy Lawyer first. Let me begin by describing the highlights of this government sponsored plan.
Why Chapter 13 St Paul Bankruptcy
YOU MAKE PAYMENTS FOR 3-5 YEARS: The plan requires you to make payments on a plan for a minimum of 3 years and a maximum of 5 years. I can’t go longer than 5 years or shorter than 3 years.
PROTECTED FROM CREDITORS: While in the plan, you are protected from your creditors. No creditor may sue you, call you, or do anything to collect on a pre-petition debt while in the plan. This is different than traditional debt consolidation where creditors are not legally bound to the plan.
PAYMENT IS BASED ON ABILITY TO PAY: What a comic relief right? Your payment on the plan is actually determined by your ability to pay not what creditors want you to pay. If you have the ability to pay 1k per month, that is your payment. On the other hand, if you only have the ability to pay 150.00 per month, that is your payment.
DEBT FORGIVEN IS NOT TAXABLE TO YOU: It is the norm not to pay all your creditors in full in this government sponsored debt consolidation plan. For example, you may have 100k in credit card debt but only 20k gets paid on the plan. You say, what happens to the balance of the 80k? It gets wiped out, tax free, forever!
COnTACT US TODAY TO SPEAK WITH A Chapter 13 ST PAUL BANKRUPTCY LAWYER FROM KAIN & SCOTT, P.A.
This government plan is actually a Chapter 13 Bankruptcy! If they called it a government sponsored debt consolidation plan, everyone would do it! When the time is right, or when you are ready, reach out to St Paul, Minnesota's nicest bankruptcy law firm guaranteed or 100% off your fees.
