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Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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I am 67 years old and on social security but also work 30

Resolved Question:

"I am 67 years old and on social security but also work 30 hours per week. In 2008 I had to close my business because I lost 3 good customers because of the economy. I was left with about $29,000 in debt from a cash flow line that was unsecured. I lost my house to a short sale and now rent. I do own some lakeshore property (land) that I owe about $96,000 on and I really would like to keep it On the cash flow line the bank just raised my payment from $740 to $950 I really can't pay that much. It was tough doing the $740. What are my options. I use one credit card that I pay off each month.
I live in Minnesota in Wright county.
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 6 years ago.

I am the JustAnswer expert that will be helping you today. I am a lawyer with 25 years experience. Although I am not your attorney, I hope that I can give you helpful legal information.

Can you tell me how much equity is in the lake property
Customer: replied 6 years ago.

I'm not sure anymore. It was worth about $200, 000 but nothing seems to be selling right now so I don't know how to judge it. Taxes were based on $127,500/


Expert:  Ellen replied 6 years ago.

You may want to consider a chapter 13 bankruptcy as it would permit you to keep the lake property and make payments over a five-year period on your outstanding debt.

I will explain

As an individual, there are two types of bankruptcy available. A Chapter 7 and a Chapter 13. There are distinct differences in between a Chapter 7 and a Chapter 13 bankruptcy.

A Chapter 7 bankruptcy could discharge (erase) all of your unsecured debt such as credit cards, judgments and personal loans. It would be an opportunity for a fresh financial start. However, you may have to surrender assets, if any, that exceed your exemption.

A Chapter 13 bankruptcy is a repayment plan for an individual. It may require that you repay some of your unsecured credit card debt over a 3 -5 year period. However, you may retain assets that exceed your exemption.

Here are the exemptions for Minnesota:

Best wishes for a successful outcome. If you have additional questions, please do not hesitate to submit them to me directly.

Thank you,
Customer: replied 6 years ago.
I don't understand the exeptions part. I don't see how I can dig out from this.... The cash flow line is my only unsecured debt. My car is paid for. The main thing is keeping the lake land.
Expert:  Ellen replied 6 years ago.
A chapter 13 bankruptcy would allow you to keep the land and make payments over a five-year period on the unsecured debt. That portion of the debt that was not paid for at the end of the five-year period would be discharged/erased
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