Faribault Bankruptcy

If majority of your debt is comprised of medical or credit card bills, then you may want to learn more about Chapter 7.

Medical debt, credit card debt, payday loans (sometimes referred to as cash advances), personal loans, and some types of taxes can all be discharged in Chapter 7. At times your car loan may be expunged depending on factors like voluntary surrender or vehicle repossession.

An automatic stay goes into effect immediately following the filing of your Chapter 7 Bankruptcy petition. This means that creditors can not contact you or your family, as well at attempt to collect on your debts.

About 95% of Chapter 7 debtors are able to keep all of their assets, which can be houses, clothes, jewelry, cars etc. Each of these assets can be retained only if its value falls below the exemption limit.

In addition to attorney fees, there is a $338 fee paid to the U.S. Bankruptcy Court to file for Chapter 7.

Do you have a steady income but a mountain of debt you cannot seem to pay off? Then Chapter 13 Bankruptcy is the answer to your problems. This plan will reorganize your debts into a reasonable payment plan that will last 3-5-years. Usually, all dischargeable debt will be expunged once the payment plan is complete.

Most commonly Chapter 13 will include mortgage arrears, car loans, and medical bills. There are certain debts that can not be discharged, these are called priority debts. Priority debts consist of spousal support, income tax debts, homeowner’s association (HOA) fees and child support payments. Although non-dischargeable, priority debts can be incorporated into your 3-5-year payment plan.

Debt consolidation is very straightforward, your debts will be combined into one single payment. Majority of the time your interest rate will also be lowered after consolidation takes place.

Most importantly your non-exempt property and co-signers can be protected during your Chapter 13 filing. If your financial situation changes during your 3-5-year payment plan, you have a few options. Your first option is to revise your payment plan by lowering the amount you pay monthly. If this is still not doable then, if eligible, you may switch to a Chapter 7 filing.

The U.S. Bankruptcy Court charges a $313 fee for Chapter 13 as well as a trustee fee. Your attorney will also have fees, which will vary case to case.

It is possible to file for bankruptcy on your own, but it can be difficult. We suggest meeting with an experienced lawyer who can discuss debt relief options with you so you can find the perfect solution for your unique situation. Call Hoglund Law today to set up a free 30-45-minute consultation with one our knowledgeable attorneys.

A bankruptcy mill can be described as a law firm with little to no experience who is more interested in making money than helping their clients.

Ask yourself these questions before retaining a bankruptcy attorney:

• Did you speak to an actual lawyer before they started discussing payments?
• Was the conversation more about their fees than your financial situation?
• Is the attorney experienced in Bankruptcy law?

Yes, bankruptcy may not be a good fit for your financial situation, but debt settlement or debt consolidation might be a better fit.

Through debt settlement your debts will be lowered by negotiating with your creditor. Once you agree upon an amount you will have to pay your creditor a lump sum and the rest of your debt will be expunged.