As Minnesota’s oldest bankruptcy law firm, we’ve heard every bankruptcy question in the book over the last 50 years of helping Minnesotans erase their debt.
Here are some of your biggest Minnesota bankruptcy questions, answered:
How do I know which type of bankruptcy to file?
At Kain & Scott, we specialize in two types of Minnesota bankruptcy: Chapter 7 and Chapter 13.
While you should always consult a qualified bankruptcy lawyer before filing for any type of bankruptcy, there are some general characteristics of each type that can help to give you a broad idea of which type of bankruptcy is most likely to benefit you.
If you are receiving steady income and would like to keep your home and other big-ticket items, a Chapter 13 bankruptcy may be the right debt solution for you. With this type of bankruptcy, the debtor must complete a repayment period (where the payments are based on what you can afford) of 3 to 5 years (the length of your repayment period depends on the unique circumstances of your case, including household income and the type of debt you have). Once you’ve successfully completed your repayment period, any remaining debt is discharged.
If you are unable to make payments and/or do not have a steady source of income, Chapter 7 may be your best bet. While some Chapter 7 clients do not keep their house and car, others do: it just depends on the details of your case. With Chapter 7, your unsecured debt is forgiven without a repayment period in as little as 90 – 120 days from filing your petition with the court. It’s important to note that not every client qualifies for Chapter 7; if you think it might be right for your family, contact our office for your free initial consultation!
What is a meeting of creditors/ 341 hearing?
After you file for bankruptcy, you and your attorney will attend a meeting of creditors. Just as it sounds, it’s an opportunity for your creditors, as well as the bankruptcy trustee, to ask you questions about your finances and the information included in your paperwork. Creditors rarely attend and the whole process is fairly quick and painless.
During the hearing, you will be sworn in and asked questions by the trustee. The meeting of creditors is an administrative hearing, not a criminal one: there is no cross-examination or scary lawyers yelling at you, like you see on television court dramas. Essentially, you will verify the information you’ve given and may be asked additional questions to ensure that you aren’t hiding assets or committing some other kind of fraud.
How long will it take to repair my credit after filing for bankruptcy?
This question is a bit tricky, as it stems from a misunderstanding about the relationship between bankruptcy and your credit score.
If you are filing for bankruptcy, chances are you’ve been missing payments, have high balances on your credit cards, and other circumstances that also cause a decline in your credit score. But, if you erase your debt with bankruptcy your credit score does not magically reset—just like when you first started out building credit, you have to repair your credit step-by-step.
However, when you file for bankruptcy with Kain & Scott you’ll get the benefit of our Free 90 Day Credit Repair Program. Our exclusive program shows you ways to repair your credit fast and obtain financing from trusted lenders.
What does a bankruptcy lawyer do?
When you hire one of Kain & Scott’s bankruptcy specialists, the first thing we do is have your free initial consultation. At the consultation, we go over some basic financial information (like what your bills are, how much income you have, the amount of debt you’ve accumulated, etc.) and after we get a clear picture of your financial state, we will advise you on which type of bankruptcy you should file.
Next, we gather all your information, complete your paperwork, and have you review and sign the petition. After you sign, we will file it with the court within days.
The next step is to attend the meeting of creditors (see above). We’ll be right by your side during the 341 hearing to help guide you through the process.
Once your petition is approved, all you have to do is sit back, relax, and wait for your debt to be discharged!
And, don’t forget, as a client of Kain & Scott, you have exclusive access to our Free 90 Day Credit Repair Program!
How do I get started filing bankruptcy in Minnesota?
If you’re ready to get control of your debt and repair your credit score, there’s no better time than now to get started! By visiting us online at www.kainscott.com, you can schedule your free initial consultation via telephone, Skype, or Facetime.
