If you find yourself struggling under the weight of immense debt in Hennepin County or Minneapolis, you may be considering bankruptcy. Filing in Chapter 7 can eliminate your debts and get you back on the path to financial freedom. Although your credit score will take a hit, you can begin the process of rebuilding your credit immediately after your debts have been discharged. Chapter 7 is a great option if you do not own a home and have few valuable assets. The local Hennepin County and Minneapolis bankruptcy attorneys of Solvent PLLC can walk you through the process of bankruptcy to get your back on your feet.
What is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy is one of the most commonly filed chapters of bankruptcy and involves the liquidation of assets. Your debts are wiped out to give you a blank slate. Chapter 7 is typically for debtors who have overwhelming unsecured debts and no way to pay them back. Chapter 7 is typically the quickest bankruptcy option, with most cases completed and debts discharged in about three months.
You must meet the following criteria to file in Chapter 7:
- Pass the means test (this test evaluates your income, family size, and expenses to determine your eligibility for Chapter 7 bankruptcy)
- You cannot have recently received a bankruptcy discharge (within the past eight years for Chapter 7 or six years for Chapter 13)
As soon as you file for bankruptcy in Chapter 7 an automatic stay will go immediately into effect, halting all actions by creditors, such as wage garnishment. This prevents creditors from taking future action against you. The automatic stay gives you time to go through the bankruptcy process with your lawyer without the added stress of hassling creditors.
Are All Debts Eligible for Discharge in Chapter 7?
While some debts can be wiped out completely through Chapter7, there are certain types of debts for which you will remain responsible even after filing.
Examples of Dischargeable Debts in Chapter 7:
- Credit card debt
- Medical bills
- Past due rent and utility bills
- Income tax older than three years
- Unsecured personal loans
Examples of Debts Not Eligible for Discharge in Chapter 7:
- Child support
- Student loans
- Restitution
- Income taxes from within three years of filing bankruptcy
Your Solvent PLLC lawyer can walk you through all of your debts to determine which are eligible for discharge through Chapter 7.
Contact a Chapter 7 Bankruptcy Lawyer
If you are in Hennepin County or Minneapolis and struggling under the weight of snowballing debts, call the law office of Solvent PLLC. Our lawyers have over 40 years combined experience in bankruptcy to help guide you through the process and advise you on best practices for your finances after bankruptcy. Call Solvent today for a consultation.
