Many people struggle with their finances and are unsure as to how to seek relief. All circumstances are different and there are a variety of legal remedies designed to aid in your financial recovery. Because of the complexity of these matters it is advised you seek the knowledgeable professional advice of experienced Roseville MN Bankruptcy Lawyers to determine what is right for you. In this blog we will begin to look at some of the key points regarding both types of bankruptcies most commonly used by individuals at Our Roseville Location. Your future needs and goals may play a large factor in determining which type of bankruptcy is right for you and depending on your circumstances.
The Chapter 7 Bankruptcy Option
When Filing a Chapter 7 Bankruptcy the vast majority of your debts are wiped out entirely. This may seem like the best option for many at first but it is also important to know that there are strict guidelines governing where your income level must be and what assets and investments you can keep. For many people this brings into question all they have worked to accumulate or provide for themselves and their family. Because of this a Chapter 7 Bankruptcy is most commonly filed by individuals who have very little disposable income and no major assets or property aside from what is protected under the Chapter 7 Bankruptcy Laws. Most of these debtors have overextended unsecured lines of credit such as personal loans, credit card debts and retail charge accounts as well as medical expenses due to unforeseen health matters.
When we use credit regularly without leaving any cushion or savings to cover at least a portion of the balances we run the risk of defaulting on the credit accounts. And the risk of default can be enhanced if we encounter an unexpected financial hardship like an unforeseen housing expense, job loss or layoff. Health care in the United States can also be incredibly expensive. An unexpected accident or medical expense has the ability to not only expend all of our income but affect our ability to earn income in the future. If you require ongoing health care to treat a condition this can amount to unmanageable debt in no time. In these types of circumstances Filing a Chapter 7 Bankruptcy is a great option and will give you the chance you need to get your life back
The Chapter 13 Bankruptcy Option
Some people earn well above the median income and engage in business ventures and investment opportunities that seem unattainable for the average person. These individuals acquire assets, property and luxury items. Stereotypically society tends to believe people like this are immune to the typical day- to- day struggles many of us have but this isn’t true. When dealing with larger finances and investments there can be a great deal of risk involved. If the individuals have leveraged the risk against themselves without the proper means to endure an unexpected financial hardship as soon as they experience a drop in income or an unforeseen expense they end up with overwhelming debt even if they have been financially successful in the past.
Many times when this happens we begin to wonder about the safety of our investments and our future that looks uncertain. This is how the Chapter 13 Bankruptcy option can help. Chapter 13 Bankruptcy won’t eliminate your debt the way a Chapter 7 Bankruptcy does but it will definitely get you the breathing room you need for recovery and allow you to protect all of your assets and investments throughout the process. Many people who’ve enjoyed financial success prior to their setbacks file Chapter 13 Bankruptcy because it halts any actions being taken against them by their unsecured creditors and allows them to propose a reasonable repayment plan.
It is important to understand that the Chapter 13 Bankruptcy Process is a 3 to 5 year commitment and because of the complexities involved with it a person looking at filing chapter 13 is well-advised you consult with experienced Roseville MN Bankruptcy Lawyers to ensure you are given good legal advice.
A Few Things To Consider When Choosing Between The Two
With all of this being said, this leaves us a few things to consider. For one, how much money do you make? If your income is too high the only the only option you might be eligible for is a Chapter 13 Bankruptcy. How about your assets? Will they be protected? If your assets and investments are essential to your future and are not exempt under Chapter 7 Bankruptcy, Chapter 13 may be your best option for providing you with the protections you need.
When experiencing a financial hardship and struggling with overwhelming debt it can be easy to start looking at your finances day- to- day without accepting how much easier and better your life will be after Bankruptcy. If you’re struggling with an overwhelming debt problem contact our Roseville MN Bankruptcy Lawyers today. Let us help you get started on the road to debt freedom. We’ll help you take away the financial uncertainty of your future. Our trained legal experts are available to help you and have over 40+ years of experience helping consumers solve every type of debt problem imaginable. Don’t hesitate any longer to get the help that you need. Contact us today for the kind, helpful and professional representation you need and deserve!