If you have been giving some serious thought on how to file bankruptcy in Minneapolis, one of the most helpful steps for you would be to read through the procedures and paperwork involved in the process ad make yourself more familiar with the process. Of course, no matter how much you read, there will always be questions. That is why it is a very wise decision to retain an attorney who can provide you guidance and assistance at every step and answer all your questions about how to file bankruptcy in Minneapolis.
How to File Bankruptcy in Minneapolis – The First Steps
One of the first steps in filing a bankruptcy is credit counseling. After you have filed bankruptcy legally, you need to receive consumer credit counseling from a bankruptcy trustee approved by the state of USA. This is done in order to explore any alternative options as bankruptcy should be the last resort to taking care of your financial debts. After the new bankruptcy law that was passed on October 17, 2005, this consumer credit counseling prior to filing a bankruptcy is a mandatory procedure.
How to File Bankruptcy in Minneapolis – Choosing Between the Two Different Types
Once you have completed your credit counseling and come to a conclusion that a bankruptcy is your only option, you need to consider one of the two different types of bankruptcies back you would like to file.
Chapter 7 bankruptcy – You can choose between chapter 7 bankruptcy and chapter 13 bankruptcy. Chapter 7 bankruptcy gives you the option of liquidation in which your non exempted assets are seized and sold out to recover money that needs to be paid to your creditors. This sets you free from all your debt so that you can have a fresh start at your financials. Chapter 7 bankruptcy can however lead to a substantial loss of your property.
Chapter 13 bankruptcy – If on the other hand you wish to keep your property, you can go for a chapter 13 bankruptcy in which you will be able to buy some time from your creditors in which you feel you will be able to repay all that debts you owe them. You are granted a specific time limit of 2 to 5 years in which you must repay all your outstanding debt to all the creditors you owe money to.
How to File Bankruptcy in Minneapolis – Retaining an Attorney
This is one of the most significant steps you will ever take in the process of filing bankruptcy in Minneapolis. A seasoned attorney is well equipped with all the legal as well as practical knowledge involved in filing a bankruptcy and makes all the paperwork and legal formalities easier for you. He can clear all your doubts about how to file a bankruptcy in Minneapolis so that you can get a whole new start to your financial and credit status.
