If you are like many people looking toward bankruptcy in Minnesota as a way to resolve their debt situation, you got to this point because of circumstances that were beyond your control. At one time, you had no issues paying your bills. All of a sudden, you found yourself using one credit card to pay another or you took out loans in order to make ends meet. Suddenly, those monthly payments became too much and now you find yourself prioritizing bills rather than just paying them.
At Ross & Associates, this is the path we see many of our clients take to get to their current state. The problem handling the debt comes from job loss, medical expenses, illness, divorce, and many more. This leads to our clients looking at two things to help them: Credit counseling or bankruptcy.
Bankruptcy Vs. Credit Counseling
Most individuals who file bankruptcy will exhaust all options first. This is because bankruptcy does remain on their credit report for 10 years, while other resolutions do not. It should be noted that most individuals who file bankruptcy will receive credit offers within months of their debts being discharged, so it is not necessary to wait 10 years to acquire credit.
At our firm, you can work with a Burnsville bankruptcy attorney that provides credit counseling services, as we are a debt management firm that helps individuals resolve their financial issues. There are times when credit counseling works well because the accounts are re-aged and brought current, while the client pays a reduced balance at a smaller payment with no more accruing fees and reduced or eliminated interest. Clients can typically repay the debt in 3 years. How many creditors agree to the settlement will determine whether or not the program is beneficial.
Filing Bankruptcy In Minnesota
If not enough creditors agree to the settlement, then bankruptcy may be the option. An outside credit counseling firm will assess your financial situation and provide a document that states you completed their 90-minute course over the phone, Internet, or in-person so that your petition can be filed with the court.
If you opt for Chapter 7, then you can have all of your unsecured debts discharged and even be able to keep all or most of your assets. If you opt for Chapter 13, then you will repay all or part of your debt over 36-60 months. Your assets will not be threatened as long as the payments are made and you can opt out of Chapter 13 at any time, but your accounts will revert back to the way they were plus any interest and fees.
So you can see that you do have options when it comes to doing something about your debt. In the end, bankruptcy is not a death sentence. Unfortunately, debt can be devastating when belongings are being repossessed and wages garnished.
Contact A Burnsville, Minnesota Bankruptcy Lawyer
There is no doubt that you’re feeling a great deal of stress because of your debt. That is why it is important you do something about it now. Waiting can lead to some very severe consequences that could lead you into bankruptcy anyway. At Ross & Associates, you can count on personalized service that is there with you through every step of the bankruptcy process. Call for a free consultation at 952-448-3333.