If you’re so overwhelmed with debt that you believe there’s no hope of repaying all that you owe, you need to consider a financial option that will work for you. Chapter 7 bankruptcy allows you to liquidate your assets and start over again with a clean slate. It will negatively affect your credit, but in all likelihood, you’ll still be able to have all your basic needs met and you can rebuild your credit over time. When you file for Chapter 7 bankruptcy, a bankruptcy court will place an automatic stay on your current debts, which will stop creditors from calling and sending harassing letters. It will also stop a foreclosure process at least temporarily. Depending on where you live, you may be able to keep some of your most badly needed property, like a car or your home if you have some equity in it. Consulting with a Chapter 7 bankruptcy attorney can help you get answers to all of the questions you may have.
The Chapter 7 Process and Eligibility
The entire Chapter 7 bankruptcy process takes about four to six months unless there are complications like the need to sell a house or to get more documentation of your assets. You must usually begin by taking some sort of credit counseling course shortly before filing. You must also meet certain income requirements or pass a “means test”, which determines whether or not you’re able to make a monthly payment of some kind to your creditors.
If you pass this test, you probably cannot afford the monthly payment and can proceed with filing the Chapter 7 bankruptcy. Once you’ve filed, you will attend a court hearing within 30 days. Then about 60 days later you will then receive a discharge of most of your remaining debts, which means you will not have to repay them. However, there are some types of debts that cannot be discharged. These include most student loans, child support, court fees, and some types of taxes.
Call to Schedule a Consultation With a Minnesota Chapter 7 Bankruptcy Lawyer Today
If you are considering filing for bankruptcy, call to schedule a consultation with a Minnesota Chapter 7 bankruptcy lawyer today. The legal professionals at the Hoverson Law Offices, P.A. recognize how devastating debt can become when you are no longer able to make your monthly payments and creditors begin to call. Visit our website at hoversonlaw.com or give us a call at 612-349-2728 and schedule a consultation with our compassionate legal staff. We’ll answer all questions you may have about your financial options and help you choose one that helps you regain financial stability.