If you are considering filing for bankruptcy, it’s best if you know all your options and how filing for bankruptcy can help you. The overall purpose of filing for bankruptcy is, if you are struggling, eliminating some of the debts you owe so you can get back on track. No one wants to file for bankruptcy, but sometimes you don’t have a choice. At Ron Lundquist, I typically work with two types of bankruptcy, Chapter 7 and Chapter 13. Each of these filings comes with its own benefits, all of which I will explain in detail here.
Overarching Benefits of Filing for Bankruptcy
In addition to the individual benefits that both Chapter 7 and 13 bankruptcies bring, filing for bankruptcy as a whole does a variety of things, such as:
● Halt creditor harassment
● Stop collection calls
● Delay lawsuits
● Stop foreclosures, repossession, or eviction for the time being
● And more
In addition to these overarching benefits, both Chapter 7 and 13 bankruptcies have their own individual benefits.
Chapter 7 Bankruptcy
When you meet with me, we will go through your entire situation, and we will discuss your Chapter 7 and 13 bankruptcy options. If you qualify for Chapter 7 and I see it as your best option, we will start the process. In this step, I will analyze a variety of pieces of information, such as:
● The types of debt you have, such as credit cards, medical, and personal loans
● Which types of debt have the potential to be discharged
● The amount of property you own
● And more
After we analyze your situation and decide if Chapter 7 bankruptcy is best for you, we will examine your facts to make sure you quality. If you do, you have to take a credit counseling course and attend a hearing. The debt wiped out includes:
● Credit Cards
● Medical Bills
● Personal Loans
In Chapter 7, your assets are almost never taken; they are almost always protected by the law.
Chapter 13 Bankruptcy
When you schedule a meeting with me, I will analyze your debts, situation, and salary to determine if it would be better for you to file for Chapter 7 or 13 bankruptcy. If you qualify for and file for Chapter 13, you get some benefits that are not available to those who use Chapter 7. Some of these benefits include:
● Potentially lowering car loan payments
● Potentially decreasing mortgage payments
● Possibly halting foreclosure or repossession
Additionally, when you file for Chapter 13, you can repay child support debt and income tax debt in a way that your budget can afford.
Though many believe that Chapter 13 bankruptcy doesn’t wipe out any debt at all, it does have that ability. The primary focus of Chapter 13 is adjusting your payments and their schedule so you can repay your debt.
With this type of filing, I take into account your ability to repay. If you are able to repay 20% of your non-priority debt, then that is what you will set up a schedule to pay off. The rest is wiped out. To learn more about this type of filing, contact me today.
Contact Ron Lundquist Attorney At Law Today
If you are considering filing for bankruptcy, contact me today. I am recognized as a debt relief agency by the State of Minnesota and can help you get back on your feet. To learn more about my services or to schedule a free consultation, give me a call at 651-454-0007 or message us on our contact page.