Hoglund Law - Bemidji, MN

Bemidji Bankruptcy

Should I file for Chapter 7 Bankruptcy?

Chapter 7 Bankruptcy may be a suitable option for Bemidji residents who are looking to get their debt under control.

What are Dischargeable Debts?

Dischargeable debts can include payday loans, personal loans, medical bills, credit card debt, and sometimes back taxes. Some debts cannot be discharged through Chapter 7 Bankruptcy, that includes student loans, alimony, child support, and recent tax debts.

What is an Automatic Stay?

An automatic stay starts after filing for bankruptcy. Creditors legally have to stop contacting you. They also have to stop collecting on your debts and it may also stop wage garnishment.

What can I keep in Chapter 7 bankruptcy, and What is an Exemption Limit?

Typically, Chapter 7 Bankruptcy allows you to keep your property after filing. Other assets such as jewelry, clothing, and cars may be kept if they fall below a certain value. This is called the “Exemption Limit.”

How much does it cost to file for Chapter 7 bankruptcy?

There is a $338 filing fee for the U.S. Bankruptcy Court. Do not forget to consider attorney fees which will vary on the complexity of the case.

Should I file for Chapter 13 bankruptcy?

If you have a significant amount of debt but have a steady income, Chapter 13 may be a suitable option. Typically, your debts will be reduced, then re-organized into a single monthly re-payment plan. The plan usually lasts 3-5 years, and any leftover debt may be cleared.

What can and can’t be discharged in Chapter 13 bankruptcy?

There are certain debts Chapter 13 Bankruptcy can help with such as mortgage arrears, credit card debt, and medical bills. There are some debts that cannot be discharged, these debts are called “priority debts”. They include income tax debts, student loans, and child support arrears. Priority debts can be included into the re-payment plan.

What are other advantages to Chapter 13 bankruptcy?

Chapter 13 Bankruptcy offers a flexible re-payment process. If your financial situation changes, you may be able to adjust your payment plan or convert to Chapter 7 Bankruptcy.

How much does filing for Chapter 13 bankruptcy cost?

The U.S. Bankruptcy Court charges a $313 filing fee as well as a fee to the trustee. You should also consider attorney fees which depends on the case’s complexity.

Should I file for Bankruptcy on my own?

Bankruptcy can be a complicated process on you own. It is important to have an attorney experienced in bankruptcy that you can trust to guide you through the process. Hoglund law encourages Bemidji residents to discuss bankruptcy and other debt relief options with an attorney before proceeding with any option.

What is a Bankruptcy Mill?

A bankruptcy mill is a law firm that prioritizes their fees over their client’s interests.

How do I avoid retaining a bankruptcy mill?

  • Have you heard good things about the law firm?
  • Does the law firm have good reviews?
  • Did you have your first consultation with an actual attorney?

Are there other options besides bankruptcy?

Yes, there are other options. Bankruptcy may not be the best solution for you. We also recommend considering debt settlement and debt consolidation.

How does debt settlement work?

Through negotiations between your creditors and lawyer, you agree to pay a portion of your debts in a lump sum. Creditors may prefer this to bankruptcy because they usually will not receive anything if you were to file for bankruptcy.

How does debt consolidation work?

Debt consolidation will re-organize your debts into one single payment that occurs monthly. This can be a good option to lower your interest rates and swipe the slate clean again.

Bankruptcy can be a complicated process, but with help from the right legal team, it can be made simple. Hoglund law is more than prepared to help guide you, we advise Bemidji residents to call us today at 855-958-4330 to set up a 100% free 30-45 minute phone consultation.