If you’re in a situation where you are considering filing for bankruptcy, it’s important to know all your options. With the help of a reputable attorney, this process can be made easier for you. At Ron Lundquist, Attorney at Law, I can help you with all of your bankruptcy questions and needs. In addition to fully analyzing your finances to find solutions, I can recommend alternatives to bankruptcy and explain the two primary types of bankruptcy I handle. When my clients file for bankruptcy, I typically suggest filing for either Chapter 7 or Chapter 13 bankruptcy. Each of these options has its own qualifications and entails different things. Here, I will walk you through both of these options, so I can help you find the option that works best for you.
What Is Chapter 7 Bankruptcy?
Most of the cases I see at my office are Chapter 7 cases. In fact, roughly 70% of all cases I have handled have resulted in filing for Chapter 7 bankruptcy. When you come in for your free consultation, we will study a vast array of information to determine whether you qualify for this filing. Some of the information pieces we study include:
In this step, I will analyze all of your assets and assign them a weighted number. From there, I will work to ensure your most important assets are protected from being taken from you. Minnesota law details a variety of exemptions in bankruptcy cases, and I will use these to your advantage.
● Previous Monthly Expenditures
In this part of the process, I will conduct a Means Test, which analyzes your income and expenditures over a set amount of time and compares them to averages in Minnesota. If you pass the income test, your case can continue. If not, we will have to reassess or look at different options.
● Potential Creditor Issues
In this step, I will determine which of the businesses you owe money to will be affected the most in this process. In some cases, debt like medical bills, credit card debt, and second mortgage debt can be erased, but other types of debt cannot be.
● Transactional Issues
When you come to my office, I will dive into your transactions for a certain amount of time to determine if there were any preferential payments or any discrepancies.
● Proper Timing
There are a variety of factors that may contribute to your ability to file for bankruptcy. If you are facing legal action or another factor, I can fast-track your case to get a solution faster. However, if there are delays with the preceding steps of the filing process, it may take longer to find a solution.
If you qualify for Chapter 7 bankruptcy, I will help you file for this process. From there, you will have to attend a hearing and complete an online counseling course. If you follow each of these steps, you should be cleared of any qualifying debt within 90 days.
What is Chapter 13 Bankruptcy?
While fewer of my clients deal with Chapter 13 bankruptcy, I still provide you with the same services as I would for Chapter 7. There are many misconceptions about filing for Chapter 13, and I can help you sort through those myths during your initial consultation. Additionally, Chapter 13 bankruptcy is good in a variety of circumstances, which I will further explain. Here are some of those circumstances:
● Preventing Foreclosure
In some cases, Chapter 13 bankruptcy allows you to create a payment plan to repay past debts, which can prevent your property from being seized in foreclosure.
● Stopping Vehicle Repossession
Similar to the foreclosure process, I can also prevent you from losing your vehicle. Additionally, I can try to change your payment so you end up paying what the car is now worth, instead of what you owe on it.
● Paying Back Debt Not Handled In Chapter 7
Certain types of debt that cannot be expunged in a Chapter 7 filing can be eradicated in Chapter 13. These two types of debt are income tax debt and child support debt.
Contact Ron Lundquist Today
If you are in the Twin Cities area and searching for an experienced bankruptcy attorney to help with your case, contact my office today. I will sit down with you to explore your case in-depth before constructing a plan to alleviate your debt. To learn more about my services or to schedule a free consultation, give me a call at 651-454-0007 or message me on my contact page today.