Ron Lundquist: Chapter 7 & 13 Bankruptcy Lawyer
Bankruptcy is one application of the law. The law exists to help people, but navigating it can be confusing. That’s why hiring a lawyer is beneficial. A bankruptcy lawyer like myself understands the legal process and how to correctly use it to your advantage.
Bankruptcy is not dishonest. It does not equate to failure. Rather, it is a compassionate process that means a fresh start, a second chance. Bill collectors, creditor harassment, lawsuits, garnishments, bank levies, and even foreclosures can be resolved by filing either Chapter 7 or Chapter 13 bankruptcy. Medical bills, credit cards, payday loans, business loans, tax issues, and other debt can all be addressed through bankruptcy as well.
I am recognized as a debt relief agency, and provide bankruptcy relief using the laws of the State of Minnesota and the United States Bankruptcy Code. Together we can get you back in charge of your finances. To find out more about the different avenues of bankruptcy, read below.
Should you file Chapter 7 or Chapter 13 bankruptcy? Good question!
The case you file depends on many different factors, all of which can be thoroughly discussed and sorted out during an initial consultation. Most clients, probably 70% or more, are Chapter 7 cases. Determining this comes down to a client’s budget, assets, creditors, transactional history, and other factors.
Chapter 13, the less likely of the two, may be necessary due to any of the following circumstances:
- The client has a good income but may have problems with the means test or other budget issues that would cause a problem in Chapter 7.
- The client has assets that they would risk losing in Chapter 7 but that can be 100% retained in Chapter 13.
- The client has debt that won’t be wiped out in Chapter 7, such as income tax debt or child support arrears. For these clients, Chapter 13 can help them control how and when this type of debt is repaid.
- The client is ineligible for Chapter 7, usually because it has not been 8 years since a prior Chapter 7 case was filed.
- Some clients wish to pay back even a small portion of their debts and so choose Chapter 13, even though they might qualify for Chapter 7.
Before your initial consultation, I encourage you to find out more about both types of personal bankruptcy on your own. But don’t let the details bog you down or discourage you. A bankruptcy consultation can sort out the advantages and disadvantages to find your ultimate solution.
One of the only methods to prevent a foreclosure is to declare bankruptcy. In fact, bankruptcy can save your house! When bankruptcy is filed, your mortgage company can no longer proceed with the foreclosure. Filing Chapter 13 enables you to have a “do-over” with your lender, paying back what you owe over time.
Has your business fallen upon hard times? As with personal bankruptcy, business bankruptcy can help your business overcome past debts and establish a fresh start. However, there are a number of unique differences in the circumstances that might determine your eligibility and how the bankruptcy process rolls out.