Faribault Bankruptcy

Filing for Chapter 7 Bankruptcy ensures the safety of your assets while also getting rid of burdensome debts.

Dischargeable debts are certain debts that can be wiped out in a Chapter 7 Bankruptcy filing. Specifically credit card debt, medical debt, personal loans, cash advances (also known as payday loans), and sometimes back taxes are all dischargeable. Non-dischargeable debts include student loans, child support, alimony, or recent tax debts.

An “automatic stay” goes into effect immediately after filing for Chapter 7 Bankruptcy. This is beneficial to you because it legally stops collections agencies from trying to contact you or attempt to collect on your debts. It also protects you from wage garnishment or bank levies. This feature is one of the many benefits of Chapter 7.

Chapter 7 Bankruptcy allows you to keep all assets that are lower than a specific value, this is called the “exemption limit”. Assets vary anywhere from cars to jewelry. About 95% of Chapter 7 debtors are able to keep their properties after filing.

The U.S. Bankruptcy Court charges a filing fee of $338 for Chapter 7 Bankruptcy. You also need to factor in attorney costs, which alter in each case.

Bankruptcy mills are best known for their lack of experience and poor customer service. More often than not, their clients receive poor outcomes for their financial situation due to lack of attention.

In order to avoid bankruptcy mills, ask yourself the following:

• Did you hear about this firm from a reputable source?
• Was payment discussed before your financial situation?
• Have you read good reviews for this law firm?

If you have burdensome debt but have a steady income, then Chapter 13 Bankruptcy might be your solution. Chapter 13 will allow you to create a re-payment plan to your creditors, normally your debt will be reduced first. The payment plan will last for 3-5-years and usually at the end any remaining dischargeable debt will be dismissed.

Medical bills, mortgages, and car loans can all be discharged in Chapter 13 Bankruptcy. Non-dischargeable debts can be included into the re-payment plan.  Child support, spousal support, homeowner’s association (HOA) fee, and income tax debts are all examples of non-dischargeable debts, also referred to as “priority debt”.

A huge benefit of Chapter 13 is the flexibility it offers if your financial situation changes. You may be able to modify your payment plan if necessary or convert to a Chapter 7 filing if your attorney sees fit.

There is a filing fee of $313 for Chapter 13 bankruptcy, a fee for the trustee, as well as attorney fees which vary on the complexity of the case.

Any dependable law firm will advise you to explore all your options and to at least discuss with an attorney before proceeding in filing alone. Here at Hoglund Law, we offer 100% free phone consultations so you can find the best option for your financial situation.

If the thought of a possibly complex bankruptcy case worries you, then let us help you obtain a financially stable future through debt settlement or debt consolidation.

Debt settlement is a process of negotiation to lower your debts. Debtors, creditors, and their legal teams are all involved this process. The reason creditors are willing to negotiate and agree upon a lower amount is simple, to them it is better to receive something rather than nothing at all if you were to file for bankruptcy.

Debt consolidation can help Faribault residents achieve debt relief and simplify their life. With consolidation, all your debts will be rolled into one payment and may also lower your interest rates.