If you are struggling to stay afloat financially, it can be hard to believe there might be any kind of relief. You might be living paycheck to paycheck, picking and choosing which bills to pay and which ones to let go past due. Then the late fees start piling up and it feels like you can’t make any headway! I’m here to tell you there is relief from this stress.
In a case where you’ve exhausted your other options, bankruptcy is the right decision. Unfortunately, there’s often a stigma to bankruptcy, but there’s no shame in needing to turn to it. Bankruptcy is meant to be a tool of the law to provide people with freedom from their weighty burden of debt. All kinds of people end up turning to bankruptcy for relief, it is a personal decision that could give you a fresh start!
If you’re deciding whether or not to pursue bankruptcy, there are a number of factors to consider, some of which will help determine your eligibility to pursue it as well as which type is best suited for your needs. Typically, that’s what I discuss with a client in our initial consultation so we can land on the best course of action. While filing for bankruptcy helps relieve you of debts, you do have to qualify. To file for Chapter 7, you need to pass a means test in which we verify that your income over the last six months is less than that of the standard household of your size in Minnesota. This would be the best choice for debts such as credit card, payday loans, medical bills, and more, however student loans are not eligible.
If there are some debts that you wish to repay, or if some of your debt cannot be included in Chapter 7, you might look at Chapter 13. This can be a good option if you have income tax debt or child support arrears, as well as to protect certain assets that may be risked by Chapter 7. You may also file Chapter 13 if it has not been 8 years since having previously filed Chapter 7. This type of bankruptcy allows you to create a repayment plan, including some of your debts. Once you’ve completed the allotted payment schedule, your remaining debts are discharged.
Deciding to file bankruptcy should not be a scary process, but it shouldn’t be a decision made lightly. That’s why it’s important to work with an experienced bankruptcy attorney who can help you find the best course of action for debt relief. I am here to help ease your worries and guide you through the process of pursuing financial freedom. Schedule a free consultation today to begin exploring your options!