Hoglund Law - Northfield, MN

Northfield Bankruptcy

Should I file for Chapter 7 Bankruptcy?

If you have a large amount of dischargeable debt that you can no longer afford to pay, then Chapter 7 Bankruptcy might be your solution.

What are Dischargeable Debts?

Credit card debt, medical debt, personal loans, payday loans (also known as cash advance loans), and utility bills are all considered potentially dischargeable in Chapter 7 Bankruptcy. Some debts are non-dischargeable: specifically alimony, child support, recent tax debts, and student loans.

What is an Automatic Stay?

An automatic stay is what happens immediately after filing for Chapter 7 Bankruptcy. This means that creditors or collection agencies, legally, can not contact your or collect on your debts.

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

More often than not you can keep all your property in a Chapter 7 filing. Property, also called assets, can be furniture, clothes, car, jewelry, etc. If your assets are below the exemption limit you can keep them, which is a certain valued amount.

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

There is a fee of $338 to file for Chapter 7 Bankruptcy. You will also have attorney fees which vary based on each case.

Should I file for Chapter 13 bankruptcy?

If you have a regular income and your biggest concern is safeguarding your assets then Chapter 13 Bankruptcy may be the solution to your financial troubles. After reorganizing your debts, you will then begin a 3–5-year payment plan. Your overall debt balance might be lowered, and at the end of the payment plan any remaining debt will generally be discharged.

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

Priority debts, also called non-dischargeable debts, are child support, homeowner’s association (HOA) fees, spousal support, or recent income tax debts. These priority debts are non-dischargeable, they may be paid off within your 3-5-year payment plan. Chapter 13 typically allows you to keep your property and protect your co-signer. Additionally, it may lower your car interest rate and total balance on your current loan.

What are other advantages to Chapter 13 bankruptcy?

Beyond protecting your assets, Chapter 13 can also offer you flexibility if your financial situation where to worsen or change. If plausible, your attorney may suggest switching to a Chapter 7 filing. If not possible, you may also alter your payment plan which is better than failing to pay.

How much does filing for Chapter 13 bankruptcy cost?

The U.S. Bankruptcy court charges a fee of $313 for Chapter 13 Bankruptcy, and a fee for the Chapter 13 trustee. You also need to factor in attorney fees, which can vary on the complexity of the case.

Should I file for Bankruptcy on my own?

Although possible, it may lead to more stress and money down the line. Hoglund Law, as should any respectable lawyer, always recommends discussing all your options with an attorney before proceeding with any debt relief option. That is why we offer a 100% free phone consultation with one of our experienced bankruptcy lawyers.

What is a Bankruptcy Mill?

Bankruptcy Mills are firms that have little to no experience or professionalism, as a result clients experience many errors with their cases.

How do I avoid retaining a bankruptcy mill?

Ask yourself the following before retaining an attorney:

  • Does the firm have good reviews?
  • Was your consultation with an actual attorney?
  • Was payment discussed before your financial situation?

Are there other options besides bankruptcy?

Yes, debt settlement or debt consolidation can also help lower your debt.

How does debt settlement work?

Debt settlement is a negotiation that happens between a lawyer and creditors, the goal is to get some of your debt forgiven. Creditors would rather receive some payment through settlement than nothing through bankruptcy.

How does debt consolidation work?

Debt consolidation works by combining all your debts into one single payment as well as lowering your loan interest rate. It also helps alleviate stress as you only have to worry about one monthly payment.