When your telephone rings morning until night with calls from collection agencies, your mailbox is full of past due bills, and you see no way out of the financial mess you are in, it might be time to consider speaking to a Minneapolis Bankruptcy Lawyer. A bankruptcy lawyer will be able to assess your situation and advise you as to what your best options may be to get out of debt. There are several types of bankruptcy available, Chapter 7 and Chapter 13 are the most popular for individuals. Your attorney will review your specific case and tell you what you type of bankruptcy you qualify for.
A Chapter 7 Bankruptcy is usually for individuals who have no means of paying back their unsecured debt. They have little income and little assets. If you do have any non-exempt property, it may have to be sold to repay a portion of your debt to your creditors. The court requires you pass the Means Test before you can file for Chapter 7. The Means Test looks closely at your income and expenses. If you make too much money, or have too much disposable income, you will not pass this test and instead must file a Chapter 13 Bankruptcy.
A Chapter 13 Bankruptcy will provide protection from your debts, but with this type of bankruptcy, you need to have a steady income. After your income and expenses are determined, your disposable income will be paid to a court trustee on a monthly basis for somewhere between three to five years. This money will be divided between your creditors. When you have paid the agreed payments, the remainder of your debts will be discharged and you will be debt free. An advantage to this type of bankruptcy is that you can keep your assets and non exempt property that would otherwise have to be sold in a Chapter 7 bankruptcy.
Bankruptcy can be a complicated decision. Speaking with a bankruptcy attorney before you decide what you are going to do to get out of debt is a good idea. The protection of bankruptcy is sometimes necessary when you are in a financial dilemma that you can’t get out of otherwise. It can give you a fresh start to new found financial freedom.