Chapter 13 · the “reorganization” chapter
Chapter 13 bankruptcy in Minnesota
The chapter that buys you time: one affordable monthly payment for three to five years, foreclosure stopped, mortgage arrears caught up, and most remaining unsecured debt discharged at the end. Here's how it works and who it fits.
What Chapter 13 actually does
Instead of wiping debts out right away, you propose a court-supervised plan to pay what you can afford — one monthly payment to a trustee — for three years (below-median income) to five years (above-median). When the plan is completed, most remaining unsecured debt is discharged.
The automatic stay protects you the entire time: most collection, garnishment, and foreclosure activity must stop the day you file and stay stopped while you're performing under the plan.
Why Minnesotans choose the longer road
You're behind on your mortgage
Chapter 13 stops the foreclosure and lets you cure the missed payments over the plan — Chapter 7 can pause a foreclosure but gives you no way to catch up.
Your income is above the means test
If you don't qualify for Chapter 7, Chapter 13 is usually the available path — there's no income ceiling.
You own more than exemptions protect
In Chapter 13 you keep your property and pay its non-exempt value through the plan instead of risking it.
Taxes or support arrears
Debts Chapter 7 can't wipe out — recent taxes, past-due support — can be paid through the plan under court protection, on a schedule you can live with.
Cost and timeline
$313
Court filing fee (U.S. Courts fee schedule), payable in installments if needed.
Paid through the plan
The part that surprises people: most attorneys take a smaller amount up front and collect the rest through your monthly plan payments — typical total fees reported nationally run about $2,500–$7,000 and are reviewed by the court. If you have steady income but no savings, Chapter 13 can be easier to start than Chapter 7.
3–5 years
The plan runs three years for below-median filers, five for above-median — discharge comes at the end, and a Chapter 13 generally comes off your credit report after 7 years (vs 10 for Chapter 7). See the full step-by-step timeline →
Is Chapter 13 right for you? Ask a local attorney — free.
Two minutes, confidential, no obligation. If you're facing a foreclosure date, check the foreclosure box so attorneys can prioritize.
Chapter 13 FAQs
Can Chapter 13 really stop a foreclosure in Minnesota?
Filing triggers the automatic stay, which stops most foreclosure proceedings immediately. Chapter 13 then does something Chapter 7 can't: it lets you catch up the missed mortgage payments over the life of a 3–5 year plan while you keep making the regular payment. Timing matters enormously — if a sheriff's sale is scheduled, talk to an attorney right away.
How much is the monthly plan payment?
It depends on your income, your necessary expenses, what you're catching up (mortgage arrears, car, taxes, support), and what your non-exempt property is worth. There's no universal number — the plan must pay unsecured creditors at least as much as they would have received in a Chapter 7. An attorney runs these numbers before you commit to anything.
Do I need a minimum income for Chapter 13?
You need regular income steady enough to fund a monthly plan payment — that's the core requirement. There is no income ceiling; Chapter 13 is often the path for people who earn too much to pass the Chapter 7 means test. There are also debt limits, which most consumer cases fall well under.
How do I find a Chapter 13 attorney near me?
Use the form on this page — free and confidential. Independent Minnesota bankruptcy attorneys see only the general details of your situation, and one who takes your inquiry contacts you directly. We're a matching service, not a law firm, and nothing on this page is legal advice.
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