Our office has helped a lot of individuals in Elko and in many areas throughout Minnesota find the peace of mind that they need when it comes to their finances. In fact, we have watched clients walk into our office the first time with fear all over their faces because their debt had run them down for them to leave us with the look of relief. This relief comes from the fact that they do not have to deal with the extreme debt any more. They are able to start over financially, which makes their overall quality of life better. Whether they have opted for bankruptcy or credit counseling services, they break free from their creditors.
Chapter 7 Bankruptcy Vs. Chapter 13 in Minnesota
Many clients wonder what the differences are between Chapter 7 and Chapter 13 bankruptcy with some hoping they do not have to file Chapter 13 because they’ve heard a lot of myths about it. The differences lie in the debts that can be included, whether or not assets will be affected, and the fact that Chapter 7 results in the discharge of unsecured debts with Chapter 13 involving a repayment plan.
Those that file Chapter 13 bankruptcy can prevent the seizure of their assets by a court-appointed bankruptcy trustee as long as they follow through with their court-approved payment plan. Whether or not this is the form of bankruptcy that is filed depends upon a person’s ability to enter into such a plan. There are a lot of people who are unable to because they simply do not have the income. This makes them candidates for Chapter 7. In Chapter 7, only unsecured debts can be included in the filing. This means credit cards, medical bills, loans, and anything else considered unsecured. If the values of assets do not exceed the exempt amounts, which are the dollar amounts they’re allowed to be worth before they can be used to pay back creditors, then you do not have to worry about losing property.
341 Hearing And Credit Counseling
There are two elements to be aware of when it comes to bankruptcy. The first is the credit counseling course that is to be completed before the bankruptcy petition can be filed. This course is approximately 90 minutes in length and can be done over the phone, online, or in-person. If you choose not to file bankruptcy, your Elko bankruptcy lawyer can provide credit counseling services to you, which involves settling your debts with your creditors for reduced amounts so you can pay them off faster. Nonetheless, the course to be completed before filing must be done in order to move forward. Approximately 30 days later is your 341 hearing and creditors may or may not appear. If they do, they ask you questions and evaluate the situation. Your attorney will help you during this hearing and with the presentation of a payment plan if you are filing Chapter 13.
Contact An Elko Bankruptcy Attorney
As you will find, bankruptcy is not nearly as frightening as what most people are led to believe. When someone hears the word “bankruptcy,” they are afraid everyone will find out about it or that friends and family will look down upon them. The fact is, having extreme debt that results in repeated collections calls, wage garnishments, and lawsuits can be much worse and that means something needs to be done as soon as possible. To learn about how Ross & Associates can help you find financial relief, call for a free consultation at 952-448-3333.