Bankruptcy is a way for you to be able to get back on your feet after dealing with mounting debt. This debt has most likely resulted in you being constantly called by creditors. You may even be facing foreclosure, car repossession, and lawsuits that could result in wage garnishment. You want to tell the creditors you would pay the debt if you could to avoid those actions against you, but you can’t. Your current income versus the amount of debt that has stacked up makes it impossible.
The good news is that when you file bankruptcy, creditors cannot contact you. They cannot try to collect upon a debt. This means foreclosure and car repossession also has to stop. If you have received notice of a court date because you are being sued by a creditor, that lawsuit has to be stopped too.
When you make the decision to file bankruptcy, you are going to be presented with two types. They are Chapter 7 and Chapter 13. Which a person files depends upon their individual situation. For instance, a person with no or very little assets will file Chapter 7. They also have an income that makes it impossible to pay back the amount of debt that they have. Someone who files Chapter 13, on the other hand, may have more assets and they want to protect those assts. They also may not meet the financial requirements for Chapter 7, so they establish a payment plan with the help of their Carver County bankruptcy lawyer that is presented to the court. This payment plan involves the repayment of all or part of the debt that is owed.
Similarly, both forms of bankruptcy require a meeting with a credit counseling agency that is approved to conduct courses with those filing bankruptcy. It is a 90 minute course that can be carried out over the phone, online, or in-person. The bankruptcy petition cannot be filed until this course is completed. Once the petition is filed, there is a meeting with creditors at least 30 days later. Creditors may or may not come and a court-appointed trustee oversees this meeting. This trustee is also responsible for seizing any assets. The Chapter 13 process can take a little longer than Chapter 7 due to the presentation and the approval or denial of the payment plan.
We offer credit counseling as an alternative to bankruptcy. This involves talking to your creditors for you in order to negotiate a settled amount that you can pay. We have clients in Carver County that wish to try this first before filing bankruptcy. Some find success with it, while the success of others depends upon how many creditors agree to lowered or eliminated interest, lower balances, smaller payments, or eliminated fees. If an affordable agreement cannot be reached, bankruptcy is the next step.
Contact A Carver County Bankruptcy Attorney
If you are facing more debt than you can handle, Ross & Associates can help you put an end to the stress that it is causing you. When you file bankruptcy, the filing of the petition can stop all collection actions against you, as well as lawsuits and repossessions. We don’t want to see you weighed down by the weight of your debt, which is why we want to help. Call for a free consultation at 952-448-3333.