The word “bankruptcy” is a frightening word to some people. To them, they feel like a word that enters their vocabulary because they have given up or they have failed in some way. The fact is, bankruptcy is not a sign of failure; it is a sign that something has happened that has caused finances to get out of control.
It can be very easy to obtain the credit accounts because they are thrown at all of us every single day. Too many can result in a lot of debt and it can be tempting to use them when there is no extra cash available to pay for something. Then again, circumstances can change in life, such as job loss or change, divorce, and a growing family. No matter the reason, Ross & Associates can help.
If you are considering bankruptcy, a qualified Savage bankruptcy lawyer is going to review the pros and cons with you. What you will find, however, is that bankruptcy laws do protect you. They protect you from collection calls once you file. You are also protected from wage garnishment, lawsuits, foreclosure, and repossession. The question is what type of bankruptcy you qualify for.
When you visit your attorney, a means test will be performed. This test measures your ability to repay your debt. If there is no ability at all and you have very few or no assets that can be used to repay, Chapter 7 may be the best route. This type of bankruptcy is called “liquidation bankruptcy” because it can end in the discharge of all unsecured debts, which means you walk away from them.
Chapter 13 bankruptcy involves the establishment of a payment plan that can cover all or a portion of all of a person’s debt. This plan must be paid over a period of 36-60 months. Once completed, the court discharges the debts. Chapter 13 works for someone who does not qualify for Chapter 7 or they do not want to lose any of their assets to pay back their creditors.
Credit counseling is performed before you can file your bankruptcy petition. Most individuals in Savage will opt to have this meeting online or over the telephone. Some will meet with a credit counselor in person to see if bankruptcy is truly the solution.
Even if you decide that bankruptcy is not the solution, your Minneapolis bankruptcy attorney can provide credit counseling services to you anyway, which involves the negotiating the debts with creditors to something you can afford so all debts can be combined into one payment that is distributed to creditors each month. This program takes approximately 36 months to complete.
Contact A Savage Bankruptcy Lawyer
If you are having difficulty with your debt, bankruptcy may be the way for you to make things easier. Debt can easily get out of hand, especially when circumstances change in your life. Perhaps you have had to deal with a divorce, job loss, job change, or your family is growing without anything changing with your income. No matter the reason behind your financial hardships, Ross & Associates can help you find a solution. Call for a free consultation at 952-448-3333.