Bankruptcy Attorneys in Minneapolis and Hennepin County in Minnesota
You may be familiar with the term bankruptcy, but what exactly does it mean for consumers? Bankruptcy is the process of eliminating overwhelming personal debts and wiping the slate clean. When a person is no longer able to pay on their debts (insolvent), they have the option to file for bankruptcy to either discharge or reorganize their obligations. Filing for bankruptcy benefits the consumer by wiping out their debts, and the creditor by paying out as much as possible from the debtors’ various assets, including property and income.
A bankruptcy lawyer can help you file and determine whether a Chapter 7 or Chapter 13 bankruptcy is right for you. The attorneys at Solvent PLLC in Hennepin County and Minneapolis have over 40 years combined experience in bankruptcy law to help you through the process and get out from under the weight of insurmountable debt. Call today for a consultation.
Chapter 7 Bankruptcy
Chapter 7 is one of the more commonly filed chapters of bankruptcy and is often referred to as liquidation. Most debtors do not lose any assets, however. Chapter 7 is generally the quickest chapter of consumer bankruptcy, with most cases complete with debts discharged within about three months. Chapter 7 bankruptcy wipes out debts, with the exclusion of student loans, alimony and child support.
An automatic stay, which is an action that immediately halts all actions against you by creditors, will go into effect as soon as you file in Chapter 7. The automatic stay can give you time to organize your bankruptcy as well as stop the processes of foreclosure and wage garnishment.
Chapter 13 Bankruptcy
In Chapter 13 bankruptcy, your debts will be restructured rather than liquidated. This process is more complex than Chapter 7 but does allow the debtor to keep valuable property and/or assets.
Restructuring debts in Chapter 13 involves the creation of a repayment plan. A repayment plan usually ranges from three to five years and gives you the chance to get in control of your finances by making manageable monthly payments. As in Chapter 7, an automatic stay will go immediately into effect once bankruptcy is filed. With your creditors blocked from taking action on your debt, you will have time to organize a plan with your lawyer and maintain ownership of property and assets.
Contact a Bankruptcy Lawyer in Hennepin County and Minneapolis Today
If your debts are getting out of control and you feel like there is no way out, you can rest assured there is a solution. The bankruptcy lawyers at Solvent PLLC in Hennepin County and Minneapolis have extensive experience helping debtors out from the stresses of debt. Your Solvent lawyer can assess your specific situation to find a bankruptcy solution that works for you. Contact our office in Hennepin County and Minneapolis today for a consultation.
