Hoglund Law - Stillwater, MN
Should I file for Chapter 7 Bankruptcy?
If you are struggling with a mountain of debt, Chapter 7 Bankruptcy may be able to help relieve the stress. You may start to see debt relief in as little as 90 days of filing.
What are Dischargeable Debts?
Dischargeable debts are types of debts that can be erased through Chapter 7 Bankruptcy. Credit card debt, medical debt, personal loans, cash advances (sometimes called payday loans), and some back taxes are all examples of dischargeable debts. Additionally, car loans may also be cleared depending on certain factors. Child support, student loans, alimony, and recent tax debts are all considered non-dischargeable debts.
What is an Automatic Stay?
An automatic stay goes into place immediately following the filing of your bankruptcy petition. It legally stops creditors from contacting you, your family, or your employer regarding your debts. It also stops them from trying to collect on your debts as well as wage garnishment.
What can I keep in Chapter 7 bankruptcy, and What is an Exemption Limit?
An exemption limit is the specific amount that an asset must fall under in order for you to keep it. Assets can be cars, jewelry, houses, etc. Most of Chapter 7 filers can keep their property.
How much does it cost to file for Chapter 7 bankruptcy?
There is a $338 filing fee paid to the U.S. Bankruptcy Court for Chapter 7 Bankruptcy as well as attorney costs, which vary in each case.
Should I file for Chapter 13 bankruptcy?
Also called the wage earners plan, Chapter 13 Bankruptcy is best suited for those who have a steady income. Normally, your debts will be reduced first then you will set up a 3-5-year payment plan. At the end of the payment plan, any outstanding dischargeable debt will be erased.
What can and can’t be discharged in Chapter 13 bankruptcy?
Debts included in Chapter 13 can be mortgage arrears, car loans, or medical bills. There are also “priority debts” or non-dischargeable debts which vary from child support to income tax debts. These types of debts can be incorporated into the payment plan.
What are other advantages to Chapter 13 bankruptcy?
Beyond being able to keep majority of your assets, Chapter 13 is also accommodating as your payment plan can be revised if necessary or converted to Chapter 7. This may be beneficial if your financial situation changes, and you are no longer able to afford your monthly payments.
How much does filing for Chapter 13 bankruptcy cost?
Chapter 13 has a few fees; a $313 fee to the U.S. Bankruptcy Court, a trustee fee, and finally, attorney fees which depend on the case.
Should I file for Bankruptcy on my own?
It is possible to file for Bankruptcy on your own, but it is very rare to have a simple enough case where an attorney is not necessary. We recommend at least discussing your options with a bankruptcy lawyer before proceeding on your own.
What is a Bankruptcy Mill?
A bankruptcy mill is a law firm with little to no experience and even worse customer service. Majority of their clients have bad outcomes as their attorney has no attention to detail.
How do I avoid retaining a bankruptcy mill?
To avoid retaining a bankruptcy mill, 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?
Are there other options besides bankruptcy?
Yes, debt settlement and debt consolidation are also beneficial in helping you receive some debt relief.
How does debt settlement work?
Debt settlement is a negotiation about lowering your overall debt balance between debtors, creditors, and their legal teams. Creditors would rather receive some payment through settlement rather than none if you were to file for bankruptcy.
How does debt consolidation work?
Debt consolidation combines all your debts into one payment and at times lower your interest rates. Consolidation can simplify your life as you only have to worry about one monthly payment.