Tag Archives: Bankruptcy Lawyer

09Oct/17
Gavel and note

7 Reasons To Hire a Bankruptcy Attorney in Minnesota

When you can no longer pay your debts, things can get very ugly. You could get calls and mail from angry creditors asking you to pay back their money. Banks may also send collection agencies to collect their debts. You may even receive calls from credit card staffers demanding payment. Some debtors can even go to the extent of suing you. To prevent all this from happening, you need to file for bankruptcy. This will keep you protected and give you peace of mind.

Hire a bankruptcy attorney

1. To protect your properties

After the bankruptcy case has gone through, the court makes an exemption of your possessions which should not be used to pay your debts. Those properties that have not been exempted may be seized and sold by the creditors to settle their debts. Hiring the right bankruptcy lawyer will help you protect what you have rightfully been granted by the court.

Gavel and bankruptcy note

2. Protection from harassment by creditors

When you file for bankruptcy successfully, an automatic stay order is issued. Unfortunately, in some cases, creditors do not respect it and may continue to harass or even threaten you. A bankruptcy attorney can help you have the automatic stay enforced thereby protecting you from such creditors.

3. To increase the chances of success

Filing for bankruptcy is a legal process that requires an understanding of the procedure and involves a lot of paperwork that may be laden with legal jargon. Bankruptcy attorneys have sufficient experience and may, therefore, guarantee a successful process. If you would choose to go it alone, your chances of success may not be as high.

4. Convenience

Filing for bankruptcy is not a one-off affair. It could be a lengthy process that might require follow-ups and lots of court appearances. It may also require many hours of research and consultation especially if you have no legal background. Having a bankruptcy attorney to represent you would save you a lot of time and effort. It is therefore very convenient.

5. They help you make the right decision

Filing for bankruptcy has its pros and cons. While it might save you from a difficult financial situation, it might have negative repercussions in future. For example, you may find it difficult to obtain credit in future. A bankruptcy attorney will walk you through the gains and possible adverse outcomes. You are therefore able to make an informed decision.

6. Help with reaffirmation agreement

A reaffirmation agreement is a legally binding agreement between a debtor and a creditor in which the debtor decides to pay a certain debt in full or partially even if the debt is dischargeable. A bankrupt attorney can help you decide on whether to reaffirm or not.

Empty wallet

7. A bankruptcy attorney can help you establish a good rapport with the parties involved

An attorney with many years of experience may know the judge and the trustee assigned to your case. They know exactly how to deal with these people to make it speedy and as smooth as possible. Without belaboring the point, there indeed are enough reasons to hire a bankruptcy attorney. Other than giving you a peace of mind, a bankruptcy attorney makes the process easier and will increase the chances of a successful outcome.

27Nov/14
Empty wallet

Common Bankruptcy Chapters

broken piggy bankThe stress and financial debt has put too much weight on you. You have thought long and hard, and you have decided to file for bankruptcy.

The first thing you need to decide when going down this path is which chapter of the bankruptcy code suits your situation. The two main chapters of the bankruptcy code for individuals are chapters 7 and 13. You may not understand them well and may want to get a bankruptcy lawyer.
Below is a basic overview of what the two chapters describe:

Chapter 7 is also known as a straight bankruptcy and is the most common chapter of the bankruptcy code. Under this chapter of the bankruptcy code, an individual will turn over all of their non-exempt properties to their bankruptcy attorney. The attorney will in turn take this property and sell it for as much as they can to pay off the individual’s creditors. When filing under this chapter you are required to fill out a form known as the “Financial Statement of Affairs” The form must list all your debts that you want to be erased. You should fill this in perfectly and honestly and not miss anything. If you do miss out filling in the debt, you will not be discharged from it.

A person should not leave out any debts because they may feel embarrassed or may not want their lawyer to know about. Further listing any debts that are not real is considered as bankruptcy fraud and is a serious crime. A person must always fill out the forms in detail and honesty. The petitioner will then have to start managing their finances and adhere to their attorneys plan and then after a certain period the person will be discharged from their debt. In most cases the individuals have little or no assets to turn over, so this chapter is the most common.

Chapter 13 also known as reorganization bankruptcy. This chapter is for individuals woman looking on paymentswho do not want to turn over their non-exempt property to the attorney’s and also want to pay back their debts. In such a case what happens is the bankruptcy attorney will formulate a plan where an individual can pay off the debts over a period of 3 to 5 years. This is done by considering how much money an individual would need to live with basic necessities and any extra income is channeled towards the debt repayment.

Once an individual has filed for bankruptcy, the bankruptcy is on their credit report for 7 to 10 years, so it is important that an individual takes the advice of their bankruptcy lawyer. A bankruptcy will hurt your credit score, but it is a fresh financial start for individuals who find themselves hopelessly buried in debts they cannot pay off. Once an individual has filed their bankruptcy they can begin fresh with no debts and the ability to start a healthy financial life. After an individuals files for bankruptcy, any more assets they earn are 100% theirs and are not a part of the bankruptcy case.

Many different codes and variants of the bankruptcy law are used in filing a bankruptcy.