Bankruptcy is a vital financial tool many that Minnesotans turn to each year for debt restructuring and debt elimination. However, it is not right for everyone’s situation. Because of the complexity surrounding bankruptcy law and the legal process involved, we advise anyone considering bankruptcy to look into the matter with an experienced MN Bankruptcy Lawyer. In the meantime, let’s take a closer look at some of the key things you must consider. It is important to understand that not all debts can be eliminated with bankruptcy. Also, not all individuals will qualify for Chapter 7 or liquidation bankruptcy. So let’s take a look at what bankruptcy can and can’t do in general terms.
Types of Debts That Bankruptcy Can Resolve
First of all, there are some things bankruptcy cannot resolve. These include debts that arose from criminal convictions, student loans (in most cases), spousal and child support, and some tax debts. Aside from these items, bankruptcy can be an extremely powerful tool for resolving all debts and financial commitments at one time! Medical bills and expenses, unsecured loans, and credit cards can be included in your bankruptcy. Department store lines of credit and many other types of defaulted financing can be done away with thanks to both the power of bankruptcy and a skilled lawyer who can advise you properly on your options. Garnishments and bank levies are immediately halted when you file bankruptcy (with the exception of certain exempt debts which we discussed earlier). For many Minnesotans, it is essential they take back control of their paychecks and bank accounts in order to begin the process of financial recovery. Many Minnesotans turn to Chapter 7 bankruptcies to completely eliminate their debts. In order to be eligible for Chapter 7, bankruptcy consumers must qualify via a Means Test. One of the key components to qualifying for Chapter 7 is being below the state median income for the debtor’s household size. If you are above this income requirement, Chapter 13 bankruptcies provide many of the same benefits and protections as Chapter 7 Bankruptcy. However, one important difference is that you will be repaying back at least a portion of your included debts. Never fear! If you’re concerned that your income and assets will disqualify you from a Chapter 7, you will still be able to pay off that portion and reclaim your finances. You will be able to make the payments because the repayment plans designated in your bankruptcy are based on your needs and ability, not the wishes of your creditors and lenders.
The Price of Bankruptcy VS The Price of Waiting To File:
Filing bankruptcy is not free and we understand that your finances are already strained. But waiting to file could be far more disastrous to your wallet when we take a closer look. Many who are struggling with debt have already lost the security of a bank account thanks to levies initiated by creditors on balances they owe. The lack of a bank account forces you to deal in cash and pay the inflated fees associated with many check cashing centers. Many Minnesotans are also struggling with wage garnishments as well which can take twenty-five percent of your “net” earnings, leaving you with little income with which to meet your remaining obligations and needs. Defaulted debts and financial agreements also wreak havoc on your credit reports by continuing to degrade your credit rating each day the debt remains open and unresolved. Whether you are filing a Chapter 7 Bankruptcy or a Chapter 13, your wage withholdings and the attacks on your bank accounts will immediately cease. Filing bankruptcy invokes an automatic injunction which forces your creditors to halt their collection activities. For many of our clients, this is exactly what is needed in order to begin the process of recovery.
How Kain & Scott Can Make Your Bankruptcy Easy and Manageable
The key to being an outstanding bankruptcy law firm is understanding your client’s needs. We have gone to great lengths in order to make every step of the process as simple and painless as can be. We offer payment plans that require no money down and offer easy payments designed with your budget in mind. Our bankruptcy law firm utilizes the latest technology and social networking tools such as Skype and FaceTime. We want to ensure that it’s always easy for our clients to communicate with us on anything they may need or anything that may require urgent attention. There are many outstanding law firms throughout Minnesota. What sets us apart from others is our specialization in bankruptcy cases. Bankruptcy is not just what we do, it’s all we do! And we’ve been doing it since 1972.
Let us put our knowledge and experience to work for you right now. Don’t hesitate any longer. Contact Us today and let us help you get your life back!