Minnesota Bankruptcy Lawyer & Attorney
If you are having difficulty with your finances, then you are like thousands of individuals in Minneapolis and around the entire state of Minnesota. Jobs tend to be lost and events occur that change the financial status of individuals every single day. Those events include illness, job loss, divorce, death of the individual who is the primary source of income, the birth of a child, and much more.
When those events cause a financial burden, bankruptcy tends to be one of the options used to straighten up the financial situation. A person will call up their Minnesota bankruptcy attorney to discuss their financial situation, the cost of filing bankruptcy, and whether or not it is a viable option.
Types Of Bankruptcy
There are two types of bankruptcy. They are Chapter 7 and Chapter 13. Chapter 7 is the most common and quickest form of bankruptcy, which is why most choose this option. Eligible assets are liquidated in order to satisfy the debt owed to creditors. However, assets are protected up to certain dollar amounts and that means a person may not lose a lot of assets when they file Chapter 7. Some individuals don’t lose any of their assets at all. But a person must qualify for Chapter 7 and a Means Test is used to determine this. This test is used to compare the income of the debtor with the median income of the state.
Chapter 13 bankruptcy can help stop wage garnishment and foreclosure. You’re able to consolidate all of your debt into a single monthly payment that is affordable. Basically, the debt is being restructured so that all or most of the debt can be paid off within a specific period of time. For those that don’t qualify for Chapter 7 or they simply want to pay back what they owe like they originally agreed to, this is a good option.
Chapter 11 Bankruptcy
Chapter 11 bankruptcy is different in that it is available to businesses as opposed to individuals. Businesses that file under Chapter 11 can stay open for the benefit of creditors and under the supervision of the court. A trustee may be appointed to assist in business operations when it is necessary.
As for how the debt is taken care of, the business makes payments to their creditors under a payment plan. This is frequently referred to as a “restructuring” of the company debts. Once the payments are complete, the remaining eligible debt can be discharged. This is a process that can be rather difficult, which is why a Minneapolis bankruptcy lawyer is needed to help see the business through every step.
Eliminate Your Debt
When you have struggled to make ends meet, you deserve a solution. We understand that trying to meet your obligations can be very stressful, so we are here to explain the entire bankruptcy process with you and to tell you how bankruptcy will benefit you and what the consequences are. Even if you decide not to file, we offer a number of services that can help reduce the debt that you owe so that your financial well-being can be better.
Contact A Minnesota Bankruptcy Lawyer
If you feel that bankruptcy may be the solution you need to resolve your financial situation, you have an attorney who is willing to help you through this emotionally draining process. To schedule your free initial consultation, call 651-454-0007 or 952-261-7348.
