Shakopee Bankruptcy Lawyer

Bankruptcy is not something to be taken lightly, as it does remain on your credit report for 10 years. At the same time, it is not a death sentence to your credit. After just two years of your bankruptcy being discharged, you can acquire a mortgage with competitive terms. It is all about making sure you acquire the right kind of credit after your bankruptcy is discharged and managing those accounts well.

But most of the challenges with acquiring credit after bankruptcy lie in the fact that the interest rates are higher and credit card accounts can come with annual and maintenance fees. Credit becomes harder to get, but it is all about doing some research to find the best accounts. It also means being responsible with credit once it is acquired in order to boost credit scores.

Types Of Bankruptcy

Chapter 7 bankruptcy is the most common type of consumer bankruptcy and is called “liquidation bankruptcy. There are many individuals in Shakopee who have filed this type and moved on with their lives. They have been able to have all of their unsecured debts discharged without losing their assets. This does not mean that everyone gets to keep their assets, but 95% of individuals do.

Chapter 13 is for those individuals who may have some disposable income left to pay bills, although that income is still not enough. Those filing Chapter 13 may also want to protect assets. This means entering into a payment plan with the court that involves the repayment of some or all of the debt. If this plan is defaulted upon, then assets may be seized. Nonetheless, a person can opt out of their Chapter 13 bankruptcy at any time, but this will mean that everything with their accounts will go back to the way they were before the bankruptcy and will include any fees or interests that will have normally accrued during that time period.

Debt Management

One of the most common forms of debt management is credit counseling and this is a service that we offer clients. While there are clients that are the ideal candidates for bankruptcy, there are those that are suited for credit counseling. Perhaps they simply need to be educated on how to cut costs in some areas so money can be paid in others while also getting their debt under control at the same time.

Contact A Shakopee Bankruptcy Lawyer

Debt is no laughing matter because it can stress you out. All debt can do is keep becoming steeper and steeper. Over time, the only way to get out of it is through bankruptcy. Ross & Associates knows how to make the process move as smoothly as possible for you so you do not have to deal with a great deal of stress. To learn more call for a free consultation at 952-448-3333.