There are several phases to the bankruptcy process. This can make bankruptcy seem rather confusing, but the fact is that a good bankruptcy attorney can streamline the process for you so that you do not feel more stress than you have to. You’ve been stressed out enough by the debt that you have been battling for so long.
Ross & Associates knows how you feel and how easily debt can take over your life. The constant collection calls remind you of your situation, you may find that there is a lawsuit against you, you may be facing foreclosure, or you might lose your car because you are behind on payments. No matter what is happening, it is best to have an experienced Belle Plain bankruptcy lawyer help you put an end to it all.
The Bankruptcy Process in Minnesota
The two types of consumer bankruptcy are Chapter 7 and Chapter 13. Chapter 7 is very common and called “liquidation bankruptcy,” while Chapter 13 is more like a restructuring of debt because it involves the repayment of all or a portion of total debt.
When we meet with Belle Plaine residents looking for a financial solution, we see people who have tried and had no luck because the fees keep piling up and the interest rates are getting higher. We perform a means test to see if they have the ability to repay their debts. If there isn’t, then Chapter 7 is ideal. If there is even the slightest ability, Chapter 13 is ideal. Chapter 13 is also the choice of those that do not want to risk losing any of their assets. As long as they pay their payment on time, assets remain untouched.
Individuals that opt for bankruptcy find that as soon as they file, any legal actions and collection actions against them stop. This is the law. It is also the law to meet with an authorized credit counselor over the phone, on the Internet, or in-person to make sure bankruptcy is truly the only option. If so, documentation is included with the petition stating such. Thirty days later is a meeting of creditors and those filing Chapter 7 see discharge of their debts approximately 60 days after that meeting. Those filing Chapter 13 will work out a payment plan with their attorney that is presented to the court. Once that plan is approved by the court and interested parties, the debt is discharged at the conclusion of those payments.
For those that may be able to opt for credit counseling, we are a Belle Plaine bankruptcy lawyer can help with this as well. It involves the settling of debts with creditors. This means negotiating lower payments, eliminating or reducing interest rates, and even eliminating fees. It is possible that not all creditors will agree, but enough agreeing can result in an arrangement that pays off debts in a few years.
Contact A Belle Plaine, Minnesota Bankruptcy Lawyer
It can be a difficult decision to file bankruptcy because it does remain on your credit report for ten years. However, that ten year period does not mean that new credit cannot be acquired before the ten years is over. In fact, most individuals are able to acquire credit within a matter of months after their debts are discharged. This shows that there is life after bankruptcy and Ross & Associates can help. To learn more about how we can help, call for a free consultation at 952-448-3333.