If you are having problems managing the mounting debt that is weighing you down, you are like millions of others throughout the country. As you know, employment situations have changed and that has been a large contributor. However, there are a lot of life changes that can take place that can lead a person into bankruptcy. Perhaps an unexpected emergency occurred, health problems led to an inability to work while the bills piled up, or a marriage ended. The list can go on and on.
Fortunately, the federal government made bankruptcy a way in which individuals could become free of their debt and start over toward a better financial future. As a result, Ross & Associates have helped many clients in Prior Lake achieve that freedom through either Chapter 7 or Chapter 13 bankruptcy. We have also helped individuals resolve their debt through credit counseling that has allowed them to pay their debt off over a period of time at reduced payments and interest rates.
Minnesota Chapter 7 & 13 Bankruptcy
One question many individuals ask their Prior Lake bankruptcy lawyer is “do I qualify for bankruptcy?” If you are having extreme difficulty paying your bills, you probably do. This is why a means test is performed in the office to see which type of bankruptcy would be best. Chapter 7 is called “liquidation bankruptcy” and is reserved for those that have more debt than they do income. This means there is absolutely no way they can pay back the debt and they typically don’t have any assets that can pay it back either. Approximately 95% of these individuals are able to keep their assets with the other 5% not having to give up much.
Even if a person can file Chapter 7 but they have assets they don’t want to lose, they may choose Chapter 13. Chapter 13 is for those that may have some disposable income, but that disposable income may not be enough to manage the debt. With this plan, all debt can be placed in a payment plan. Depending upon the debt and the individual financial situation, part or all of a debt may be repaid over 36-60 months.
The benefits to bankruptcy include the ability to reaffirm debts that you want to keep, foreclosure stops, car repossession stops, wage garnishment stops, lawsuits cannot move forward, and collection calls cannot continue. Deals can also be worked out so you don’t lose your home or car at all.
If you decide bankruptcy is not the option for you, then there is credit counseling. Some individuals find themselves in credit counseling anyway because it is required that they meet with a credit counselor over the phone, on the Internet, or in-person prior to filing bankruptcy. There are times where the credit counselor finds that alterations to a person’s spending can free up the income needed to pay debt, especially under settled amounts with the creditors that include reduced payments, elimination of fees, and reduced or eliminated interest rates.
Contact A Prior Lake, MN Bankruptcy Attorney
If you feel like you are drowning in your debt, it is most likely because you are. Bankruptcy can be the alternative to trying to deal with debt that continues accruing fees and interest. Paul Ross & Associates knows what you are going through and can help you put an end to the collection calls, wage garnishments, lawsuits, foreclosure, and more. To learn more, call for a free consultation at 952-448-3333.