Hoglund Law - Austin, MN
Should I file for Chapter 7 Bankruptcy?
Chapter 7 Bankruptcy is a great option for those experiencing financial troubles. It can provide debt relief in as little as 90 days as well as the opportunity to keep your assets.
What are Dischargeable Debts?
Dischargeable debts are the specific types of debts that can be discharged through Chapter 7 bankruptcy: credit card debt, medical debt, personal loans, cash advances (sometimes called payday loans), and some back taxes are all considered dischargeable. Car loans may be discharged depending on certain factors like car repossession or vehicle voluntary surrender. Certain debts cannot be discharged in Chapter 7; student loans, child support, recent tax debts, and alimony are all non-dischargeable debts.
What is an Automatic Stay?
An automatic stay halts certain actions by creditors, like contacting you, your family, or employer, garnishing wages, and also stops them from attempting to collect on your debts. This stay begins the moment the bankruptcy petition is filed.
What can I keep in Chapter 7 bankruptcy, and What is an Exemption Limit?
Typically, in Chapter 7 you are able to keep all assets that fall under a set limit, this is called the “exemption limit”. This limit varies due to the value of certain assets. Assets can be cars, furniture, clothing, jewelry, or houses. 95% of Chapter 7 debtors are able to keep their property after filing.
How much does it cost to file for Chapter 7 bankruptcy?
There are two fees in Chapter 7 bankruptcy; the first is a $338 fee to the U.S. Bankruptcy Court. The second is attorney fees which vary in each case.
Should I file for Chapter 13 bankruptcy?
Chapter 13 bankruptcy, also known as a wage earners plan, allows you to achieve a financial free future through developing a plan to repay your debts. These payment plans can possibly reduce debt as well. By paying your creditors on a monthly basis, you can be debt free in three to five years.
What can and can’t be discharged in Chapter 13 bankruptcy?
Typically, all dischargeable debts are erased at the end of your 3-5-year payment plan. These include mortgages, car loans, and medical bills. At times, non-dischargeable debts can be combined into the re-payment plan. This includes child support, spousal support, homeowner’s association (HOA) fees, and income tax debts. “Non-dischargeable debts” are also referred to as “Priority debts”.
What are other advantages to Chapter 13 bankruptcy?
A big advantage of Chapter 13 Bankruptcy is that it protects non-exempt property as well as co-signers. It can also offer flexibility, if your financial situation worsens, you may be able to lower your monthly payments. Or if your bankruptcy attorney sees fit, you may be able to convert your filing to Chapter 7 rather than defaulting on payments.
How much does filing for Chapter 13 bankruptcy cost?
Filing for Chapter 13 has a fee of $313 which is paid to the U.S. Bankruptcy Court. Additionally, you attorney will charge you a fee which varies for each case, as well as a fee to the chapter 13 trustee.
Should I file for Bankruptcy on my own?
Hoglund Law always advises any potential bankruptcy client to explore all their options and to at least speak to an attorney before filing on their own. That is why we offer 100% free phone consultations so you can pick the best decision for your financial situation.
What is a Bankruptcy Mill?
A Bankruptcy mill is a large law firm that provides low quality legal service. Due to the volume of the firm, they often cannot provide clients with the attention they need.
How do I avoid retaining a bankruptcy mill?
Before retaining a law firm ask yourself the following:
- Was your consultation with an actual attorney?
- Was payment discussed before your financial situation?
- Have you read good reviews for this firm?
Are there other options besides bankruptcy?
If you fail to qualify for bankruptcy due to your outstanding personal debt, do not worry as there is also debt settlement or debt consolidation to consider.
How does debt settlement work?
While debt settlement unfortunately does not discharge your debt completely, it almost always results in significantly lowering your overall debt. This form of debt relief is often referred to as debt negotiation. It is an agreement between a lender and a borrower to pay back a portion of a loan balance, while the remainder of the debt is forgiven.
How does debt consolidation work?
Debt consolidation is pretty simple, it combines all of your debts into one single payment. This helps alleviate stress as you only have to worry about one payment each month. Debt consolidation sometimes may result in lower interest rates and lower debt payment amounts.
Feeling overwhelmed about debt relief options? Call Hoglund Law today at 855-958-4330 to learn about the different options with an experienced attorney and start living a debt free life.