Debt is nothing to be ashamed of. Most everyone has some sort of debt. For many individuals in the country, they were able to manage that debt at one time. Unfortunately, something changed that altered the ability to manage the debt. Perhaps a divorce occurred, a change in employment, or a medical problem. There are so many reasons why individuals have to entertain the idea of bankruptcy and why they turn to Ross & Associates for help.
When clients walk into our office, we first conduct a means test. This test helps determine what form of bankruptcy is the best to file for their situation. Every case is different, so each person needs a solution that suits their situation.
Minnesota Chapter 7 Or Chapter 13?
When a Dakota County bankruptcy lawyer conducts a means test, it is about looking at income versus debt and if there are any assets that can be used to satisfy the debt. Asset values are exempt up to a certain amount, which means many individuals do not have to give up any assets at all.
Nonetheless, the means test can help determine whether or not Chapter 7 or Chapter 13 is the best to file. There are some individuals that qualify for Chapter 7 but they file Chapter 13 so they do not have to lose their non-exempt assets. They are also able to include other debts in their filing, whereas only unsecured debts (credit cards, loans, medical bills, etc.) can be included in Chapter 7. The Chapter 7 process does tend to move faster because it is rather cut and dry. Chapter 13 requires the establishment of a payment plan that is presented to the court. The plan states that a certain amount of the debt will be paid back over a period of 36-60 months.
But no matter the type, everyone has to take a credit counseling course prior to the filing of the bankruptcy petition. This is an educational course that is conducted over the phone, the Internet, or in-person and is also used to determine if bankruptcy should be filed. If so, the petition is accompanied with a document that states the course was completed.
Bankruptcy Or Not?
We do have a number of individuals that opt for our credit counseling services and they see success. This depends upon how many creditors agree to smaller balances, reduced payment amounts, little or no interest, and the elimination of fees. If not enough creditors agree to a settlement amount, bankruptcy tends to be the next step for the client.
Contact A Dakota County, Minnesota Bankruptcy Lawyer
Debt can have an effect on many areas of your life, which is why it is very important to do something about it as soon as possible. The longer you wait, the more it is going to pile up. This can lead to wage garnishments, repossessions, lawsuits, and more. Ross & Associates is here to help you keep those things from happening. To learn more, call for a free consultation at 952-448-3333.