Minneapolis Bankruptcy Lawyer
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It is emotionally and physically draining to deal with financial worries day in and day out. If you and your family are struggling with debt, it can be difficult to live a free and joyful life.
Fortunately, your debts can be wiped clean through the bankruptcy process, giving you a chance to start over with a completely new slate.
You don’t have to struggle with debt forever. If you or a loved one is currently facing a large debt burden and considering the bankruptcy process, our knowledgeable bankruptcy attorneys at Milavetz Injury Law, P.A. can help.
What does filing for bankruptcy in Minneapolis entail?
When you file for bankruptcy, you are beginning a legal process designed to give people a completely fresh start in their financial lives.
Bankruptcy is found in the United States Constitution and allows individuals to discharge certain debts related to credit cards, payday loans, medical bills, and unsecured loans.
To put it simply, bankruptcy is a legal option to free yourself from excessive debt and let you experience the peace of mind you deserve. There’s no shame in starting over and learning to build a solid financial future for you and your family from the ground up.
What are the different types of bankruptcy?
There are a number of different types of bankruptcy proceedings commonly filed to discharge debt, including Chapter 7, Chapter 13, and Chapter 11. Most people who file bankruptcy to free themselves from excessive debt do so under Chapter 7 or Chapter 13.
Chapter 7 Bankruptcy: Liquidation
Chapter 7 bankruptcy is a liquidation plan, which means no repayment plan is necessary, and the individual’s debt is completely cleared after the bankruptcy proceedings are finalized. While this sounds like a great way to restart your life, there are several caveats. First, debtors must agree to liquidate their assets in order to pay off as much debt as possible. Whatever debt remains after that liquidation process is then written off and dismissed. To file chapter 7 bankruptcy, the debtor is required to have an income below the median in the state in which they’re filing. The filer must typically pass a “means test” to determine eligibility.
Chapter 13 Bankruptcy: Individual Debt Adjustment
While chapter 7 bankruptcy liquidates and completely writes off a portion of an individual’s debt, chapter 13 bankruptcy focuses on determining a repayment plan. If an individual fails the means test and cannot file for chapter 7 bankruptcy due to having a higher-than-median income, chapter 13 is a suitable option. The process for filing chapter 13 bankruptcy involves the debtor submitting a repayment plan to the court for approval. Usually, the individual only has to pay off a portion of their debt depending on the type of debt they have.
Chapter 11 Bankruptcy: Reorganization
Chapter 11 bankruptcy can be filed by either businesses or individuals and is typically a reorganization of a business. In the chapter 11 process, the entity filing bankruptcy restructures its debt and determines a plan for paying back creditors.
Is bankruptcy right for you?
Choosing whether or not to file bankruptcy is a major life decision and requires both planning and forethought.
If you are considering bankruptcy, first determine how your financial situation currently looks and whether you have the means to pay off your debt—even if that means enduring a slightly lower quality of life temporarily. If you have assets or savings, it is worth considering whether or not you can liquidate some of them in order to pay off your debt.
Most individuals view bankruptcy as a last resort after attempting to work with creditors, determine payment plans, and show a willingness to get their debt repaid.
If after all of these considerations you still feel that your debt burden is unmanageable, then it is advisable to proceed with the bankruptcy process.
Note that bankruptcy will negatively impact your credit score and stay on your credit report for up to 10 years.
If you’re drowning in debt and have no way to pay your debt obligations, then bankruptcy might be right for you.
What are the costs of bankruptcy filings in Minneapolis?
The state of Minnesota has laws in place that determine bankruptcy lawyer fees and prevent you from having to shell out a significant sum to complete your bankruptcy proceedings. Attorney fees will typically depend on the type of bankruptcy you’re filing.
For chapter 13 bankruptcy filings, courts will typically approve up to $2,500 in attorney fees for three-year payment plans and up to $3,000 in attorney fees for five-year repayment plans.
When filing chapter 7 bankruptcy, pricing can be more difficult to determine upfront. Speak with the bankruptcy attorneys at Milavetz Law for more details about chapter 7 pricing and fees. We will work with you throughout the entire bankruptcy process to ensure a smooth filing.
What to Expect from the Bankruptcy Process
When filing for bankruptcy, it is important to understand how the process typically works and what you can expect every step of the way.
The first step is to meet with a bankruptcy attorney, such as our caring and knowledgeable lawyers at Milavetz Law. We’ll discuss your current financial situation and determine the best course of action for you to take.
Once you’ve spoken with our attorneys, we’ll help you talk to creditors and let them know you’re filing for bankruptcy. You will need to attend a financial management session that provides counseling for bankruptcy filers, and you will also need to attend a creditor meeting known as a “341 meeting.”
Finally, after you’ve completed the bankruptcy process, you’ll have your debt discharged or set up with a repayment plan—depending on how you choose to file.
Why do I need a Minneapolis bankruptcy lawyer?
The bankruptcy process can be tricky to handle on your own, and there are deadlines and documentation procedures that a lawyer can help you navigate with ease.
If you or a loved one is looking to file for bankruptcy in Minneapolis, contact the bankruptcy attorneys at Milavetz Law today. We have many years of experience helping clients file for bankruptcy, and we will help walk you through the entire process.