Chaska Bankruptcy

Chapter 7 Bankruptcy is a great debt relief option for those with medical bill debt or credit card debt, payday loans, or unsecured personal loans.

A Chapter 7 filing may allow you to discharge Payday loans (also known as cash advances), medical debt, credit card debt, personal loans, and sometimes back taxes. At times car loans can also be wiped out dependent on certain situations like vehicle voluntary surrenders and vehicle repossession. Non-dischargeable debts can be (but not limited to) student loans, recent tax debts, and child support.

After your bankruptcy petition has been filed, an “Automatic Stay” will go into place. This means by law firms or collectors can not contact you or attempt to collect debts.

An exemption limit is a set number that each assets’ value must be lower than. Any assets that fall below this limit typically are yours to keep. This includes homes, cars, furniture, jewelry, clothes, and cash.

The U.S. Bankruptcy Court charges a $338 fee for Chapter 7. You will also owe attorney fees which depend on the intricacy of the case.

If your income excludes you from Chapter 7 Bankruptcy, then Chapter 13 may be beneficial to you. Due to this, it is sometimes called the wage earners plan.

Car loans, mortgages, homeowner’s association (HOA) fees, and medical bills may all be included in your repayment plan. Normally, any remaining debts will be discharged at the end of your plan. Not all debts can be discharged, specifically spousal support, child support, and recent income tax debt. These types of debts are called “priority debts” in Chapter 13 Bankruptcy.

Chapter 13 Bankruptcy normally keeps non-exempt property protected, as well as any co-signer you may have. When you file for bankruptcy, it is important that your budget remains intact. One of the goals of a Chapter 13 is to ensure your payments are affordable. If you are not able to keep up with payments you can adjust your payment plan or convert to Chapter 7, if eligible. Typically, the amount you end up paying off in your payment is much lower than your original debt.

The U.S. Bankruptcy Court requires a $313 fee for Chapter 13 bankruptcy as well as a fee for the trustee. Attorney fees can be included in the repayment plan.

It is possible to file for bankruptcy without legal representation, but it can be tricky. Most financial cases are not straightforward, and the bankruptcy process is very technical. Any mistakes or errors in your bankruptcy petition can result in fees or worse, your case being dismissed. Therefore, we always suggest discussing your options with a qualified lawyer before beginning any type of debt relief. Hoglund Law offers a 100% free 30-45-minute phone consultation with one of our attorneys.

A Bankruptcy Mill is comprised of a team of inexperienced lawyers who are not devoted to their clients. Inevitably, this can cause you errors which means more costs and fees down the line.

Before retaining a law firm ask yourself the following:

• Was your consultation with an actual lawyer?
• Did they discuss payment before your financial situation?
• Have you read good reviews about this firm?

Yes, bankruptcy is not the only debt relief option. Debt settlement and debt consolidation are also practical options.

In terms of debt settlement, settlement simply means that your debts will not entirely go away but they instead be lowered through negotiation between a lawyer and the creditor. Usually, a creditor can lower an outstanding balance to a much more obtainable number. Creditors prefer this because they have a better chance of collecting from you through settlement rather than bankruptcy.

Debt consolidation works by lowering your interest rates, paying off your debt in an easy payment plan, and sometimes getting rid of annual fees. Not only does consolidation lower your debts but also simplifies your life as you only have to worry about one monthly payment.

Call Hoglund Law today to learn more about the different debt relief options and see which best fits your situation.