Minnesota Bankruptcy Lawyer
There is a stigma that is attached to bankruptcy. Some individuals think that they have failed somehow or that everyone is going to judge them because they had to go bankrupt. That is not always the case. Economic situations, job loss, and divorce are just some of the reasons why individuals have to go bankrupt. They’ve tried credit counseling, debt consolidation, and even negotiating with creditors. Unfortunately, none of it worked because their income was too low in relation to their debt.
If you are thinking about filing bankruptcy, you may want to speak to your Minnesota bankruptcy attorney about the process and how it will impact your financial situation. Yes, bankruptcy does remain on your credit report for 10 years, but that does not mean you can’t acquire new credit soon after filing. This is how you start over and start over cautiously. Speaking to your attorney will also help you determine which form of bankruptcy is best for you.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is also called “liquidation bankruptcy.” This is because you can eliminate your unsecured debt completely. Discharge of debt can also be done by having to give up very few assets or none at all. What you have to give up in the form of assets will depend upon how much you have. Fortunately, Minnesota is a state that allows you to take advantage of state or federal exemptions. You can choose which will work more in your favor and this could result in you keeping all of your assets, while also being relieved of your debt.
Chapter 13 Bankruptcy
There are some individuals with incomes that are too high to file for Chapter 7, so there is Chapter 13. This form of bankruptcy allows for a payment plan to be put in place that allows the debt to be paid back in a period of 3 to 5 years. This plan does not necessarily mean that 100% of the debt must be repaid and it does not mean assets need to be seized. Assets may only need to be seized if the payment plan is defaulted upon. Once the payment plan is complete, the debt is discharged.
Chapter 11 Bankruptcy
Chapter 11 bankruptcy is reserved for businesses, but it can be used by individuals in some cases. Nonetheless, it is a reorganization of debt. It allows the business to reorganize its debts so that creditors are repaid and the business can return to profitable status. When times are tough and a business is in the red with the potential to be profitable if the debt is restructured in a way that makes it affordable, the business does not have to close its doors.
Minnesota Bankruptcy Lawyer
If you are facing a difficult financial situation and you have exhausted other options to resolve it, it may be time to file bankruptcy. While this can be a stressful process, know that it is one that can go smoothly and be less stressful with the right legal representation working with you. To learn more about how the Liebmann Law Office can help you, call for your free 30 minute phone consultation at 952-882-1227.