You’ve scrimped. The second job seemed like a great idea but is only impacting your full-time work. Borrowing from family and friends will barely make a dent. It’s time to admit it, a fresh start is needed and bankruptcy is the answer. While there are several options you can make, filing for Chapter 7 bankruptcy is often times the fastest way to ‘wipe the slate clean’. A business who finds themselves unable to pay the outstanding balances they owe, be it tens of thousands or only a few, is eligible to file Chapter 7 bankruptcy in St. Paul MN. There is no threshold to be met for a Chapter 7 filing. The debtor’s counsel will help determine if the debt can be resolved, potentially in installments. The party filing must make below the current median income limitations and file the appropriate fees to proceed. The decision will be made by the debtor if they wish to release any secured debts (such as a mortgage or car payment) or if they will be able to enter into a “reaffirmation agreement” with the creditor. This may not be an option, as you are effectively placing your financial life into the court’s decision-making hands. Your eligibility is determined by a providing complete record of debts owed, proof of your currently monthly income and living expenses and components of your last two years’ transactions including property bought and sold.
One of the more rapidly beneficial reasons for filing Chapter 7 bankruptcy in St. Paul MN is the collectors. Once a bankruptcy is filed, an Order of Relief is filed. This (at least temporarily) halts most collection agencies from their ability to contact for payment or garnishment of your income. A discharge does release the debtor from their existing outstanding debts but some debts, like student loans and child support, can not be cleared. If you have filed for bankruptcy in the past you may not be eligible to re-file, depending on it’s outcome. While many people experience initial shock or depression when the decision to file is made, a fresh start is their key to a new life. This is not a decision to make lightly but for some is ideal.
