Bankruptcy And Debt Relief Lawyers In Woodbury
What Is Bankruptcy?
Bankruptcy is a legal process designed to provide relief to individuals with overwhelming debt. By filing a claim under the appropriate “chapter” of the bankruptcy code, individuals can petition to have debts consolidated, eliminated, or restructured.
Bankruptcy may be right for people facing unforeseen circumstances that prevent them from fulfilling their debt obligations—things like job loss and predatory lending. Bankruptcy may also be appropriate if someone routinely struggles to pay monthly bills, relies on credit cards to pay everyday expenses, or has growing medical bills.
Benefits Of Bankruptcy
Filing for bankruptcy can relieve a person’s debt obligations and allow them to build a more financially stable future. While the filing process can be difficult and confusing, a seasoned bankruptcy attorney can assist with the following:
- Stopping harassment from creditors
- Reducing credit card and medical bills
- Preventing foreclosure of your home
- Protecting you from wage garnishment
- Eliminating unsecured debt
What Is Debt Elimination?
Bankruptcy can discharge or eliminate an individual’s debt, meaning the debtor is released from being personally responsible for them. Creditors may receive a portion of the amount owed, or nothing at all, depending on the outcome of a person’s bankruptcy claim.
Bankruptcies often result in “no-asset” cases in which the debtor has no means of settling a debt—either through repayment or the liquidation of non-exempt assets—and creditors are forced to discharge it permanently.
While not all debts are dischargeable, things like medical bills, personal loans, credit card bills, and other unsecured debts may be eliminated. Student loans, government debts, alimony, and child support, however, usually cannot be eliminated through bankruptcy.
What Type Of Bankruptcy Applies To Me?
The different types of bankruptcy are referred to as “chapters.” Individual filers have the option of pursuing bankruptcy under Chapter 7 or Chapter 13.
What Is Chapter 7 Bankruptcy?
Chapter 7 is known as liquidation bankruptcy, which means some of a debtor’s non-exempt assets are surrendered in order to pay down a portion of his or her debt. Debts that cannot typically be discharged under Chapter 7 include alimony, child support, government obligations, and some taxes.
While Chapter 7 filers may have to part with some assets, an attorney can help save essential items like your car, home, and personal property. Many filers are even able to refinance vehicle payments, secure new car loans, and apply for new lines of credit after their bankruptcy.
What Is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy entails debt reorganization and repayment. In order to qualify for a consolidated repayment plan, a debtor will need to have a steady source of income. If you are experiencing job loss in tandem with your financial struggles, Chapter 13 may not be right for you.
Under the rules of Chapter 13, a debtor pays monthly installments to a court-sponsored, independent trustee over a period of three to five years. Only the debtor’s disposable income will be allocated toward the repayment plan, allowing he or she to attend to necessary bills and essential expenditures. Once the terms of the agreement are satisfied, any remaining balance will be discharged or eliminated.
Nicolet Law Office, S.C. In Woodbury, MN
Our Woodbury office is located within the shared working space The Reserve off of Bielenberg Drive and Tamarack Road. It neighbors the La Quinta Inn & Suites and is near the Tavern Grill. Click here for directions.
Contact A Woodbury Bankruptcy Attorney Today
At Nicolet Law Office, S.C., our team of trusted bankruptcy attorneys will tackle your financial obstacles and guide you through every step of the bankruptcy filing process. Our team is dedicated to helping our clients recover and rebuild from financial hardship.
To get started, call our Woodbury office today at 866-663-8774 to reserve your free initial consultation. You may also use our contact form to submit your consultation request. Be sure to indicate how you would like to speak with your attorney, whether that be over the phone, via video-chat, or at our Woodbury office.