Hoglund Law - Moorhead, MN

Moorhead Bankruptcy

Should I file for Chapter 7 Bankruptcy?

Chapter 7 Bankruptcy is a suitable option for individuals in Moorhead who are looking to completely discharge most or all their debt.

What are Dischargeable Debts?

Dischargeable debts may include Payday loans (also known as cash advances), medical debt, credit card debt, personal loans, and sometimes back taxes. Debts related to car loans are typically wiped out depending on factors like vehicle repossessions or vehicle voluntary surrenders. Some debts are considered non-dischargeable; those include (but are not limited to) recent tax debts, child support, alimony, and student loans.

What is an Automatic Stay?

Once your bankruptcy is filed under Chapter 7, collecting on or contacting about any of your debts are temporarily paused by law once the “Automatic Stay” begins.

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

95% of debtors filing for Chapter 7 Bankruptcy typically can keep their property. Home and other forms of property fall under the category of “assets”; also in that category: cars, furniture, jewelry, clothing, and cash. Retaining these assets depends on their value; you can keep assets that fall below a certain amount, known as the “exemption limit”.

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

The cost to file for Chapter 7 Bankruptcy is currently $338, required by the U.S. Bankruptcy court. Attorney fees vary upon the complexity of the case.

Should I file for Chapter 13 bankruptcy?

Chapter 13 Bankruptcy is sometimes referred to as the wage earners plan. This is an option for Moorhead residents who earn a monthly income high enough to disqualify them from Chapter 7.

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

Your debt is reorganized, and you repay what you can afford over the course of 3-5 years. This can help with car loans, mortgages, and medical bills. Typically, all dischargeable debts at the end of this payment period are wiped out. Non-dischargeable debts in a Chapter 13 bankruptcy are called “priority debts”, which include recent income tax debt, homeowner’s association (HOA) fees, spousal support, and child support. These types of debts may be included into the repayment plan.

What are other advantages to Chapter 13 bankruptcy?

Filing for Chapter 13 Bankruptcy differs from Chapter 7 in that usually non-exempt property stays protected, as well as any co-signer. Another perk is that debt you end up owing in the end of your plan may be significantly lower than prior to filing. This is due to lower interest rates and sometimes lower debt balances overall. Also, if your financial situation were to worsen over time, you may be able to convert to a Chapter 7, as opposed to defaulting on your restructured payments.

How much does filing for Chapter 13 bankruptcy cost?

U.S. Bankruptcy Court requires a $313 fee to file for Chapter 13 bankruptcy. Attorney fees are typically included in the Chapter 13 debt consolidation plan.

Should I file for Bankruptcy on my own?

It is possible to file for bankruptcy without legal representation, but it can be tricky. Majority of times, your financial situation is more complex than you think and you may not receive the best possible outcome without help from an expert. It is in your best interest to explore all your debt relief options before proceeding with any choice. That is why Hoglund Law offers a 100% free 30-45-minute phone consultation with one of our lawyers.

What is a Bankruptcy Mill?

A Bankruptcy Mill is a large firm that lacks experience and dedication. Their lack of attention to detail can cause errors in your case and cost you more money down the line.

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 about this firm?

Are there other options besides bankruptcy?

While bankruptcy is the first thought to many in financial distress, it may not be the best option for your situation. Debt settlement and Debt negotiation are also worth considering.

How does debt settlement work?

Debt settlement means that your debts will not entirely go away but they instead be lowered through negotiation between a lawyer and the creditor. When a debtor files for bankruptcy, especially Chapter 7, the creditor sees no money, whereas they’ll receive a portion through debt settlement.

How does debt consolidation work?

An attorney may also advise you towards debt consolidation, which combines your debt into one single payment. It’s ease of use is beneficial as well as many times, lower interest rates.

The dedicated bankruptcy lawyers at Hoglund Law are here to help steer Moorhead residents down the correct path towards a better financial future.