A reaffirmation is an official way to “reobligate” yourself on the loan. This involves the lender sending us a reaffirmation contract to be signed by you.
Bankruptcy Is Your Right
The credit card companies have put many millions of dollars not only into steering legislation in their favor, but also to shaping Americans’ attitudes towards going bankrupt. Many feel that being bankrupt is immoral because one is “stiffing” their creditors. However, the right to file bankruptcy is a constitutional right (Article I, Section 8, Clause 4): and in a consumption-based economy, bankruptcy is an absolute necessity. If the safety valve of bankruptcy wasn’t available for its citizens, the American economy would grind to a halt.
The top three reasons for filing for bankruptcy are: unemployment, medical expenses, and divorce.
A credit agreement is a contract, a loan agreement is a contract, a mortgage agreement is a contract. These contracts are filled with terms and conditions that favor the banks. When you are faced with a financial emergency and need the banks to work with you, many will not. And in the case of credit card companies, they use the opportunity to make money off of your misfortune. If you’re unable to make your car or house payments, eventually the bank will repossess the collateral and have deficiency rights. This means that after the bank takes back the car or house and sell it, they can sue you for the unpaid “deficiency balance
Going Bankrupt in Minnesota
The weight of debt is hard to bear, especially if you’re not in a financial position to take care of it. If you file for bankruptcy in Minnesota you have a chance to get out from under the pressure of constant contact by collection agencies and the stress of wondering if it can ever end.
What the Minnesota Bankruptcy Laws Can Do For You When you file for a Minnesota bankruptcy the first thing will happen is we call an “automatic stay.” This stops creditors from contacting you or garnishing your wages while the US bankruptcy court in Minnesota looks over your petition. The end goal for most bankruptcies is for the bankruptcy court in Minnesota to discharge your debts. A discharged debt is one that the creditor can no longer try to collect on. There are limited types of debt that a bankruptcy in Minnesota can discharge, including credit card debt, medical bills, and unsecured bank loans.
Situations Where Filing Bankruptcy in Minnesota Cannot Help Minnesota bankruptcy filings can’t discharge certain debts, such as secured bank loans (loans that have a lien in collateral), student loans (except in extreme circumstances), some tax debts, or child support. So if you’re floundering under these debts, a bankruptcy will not help you.
Do You Need a Bankruptcy Lawyer? Even though anyone can file a bankruptcy without a lawyer, incorrectly filling out the paperwork can easily happen. When the paperwork is done wrong, the court can refuse your proposal or cause you to lose needed necessities like your car.
Picking Between Minnesota Bankruptcy Law Firms If you’re considering bankruptcy, call us here at Atlas Law Firm. We can go over your options with you. You’ll discover that no other Minnesota bankruptcy law firm provides the level of service that we do. With a free initial consultation you’ll see that our experience can effectively guide you through the bankruptcy process. We know every step and recognize the unique challenges that each step faces. Filing for bankruptcy is not fun, but it is a solution to a problem. With our skilled knowledge at your side you will be able to let us worry about the legal compilation of your bankruptcy filing.
Chapter 13 is essentially a payment plan that you organize through the court system. Think of it as a consolidation loan with teeth.
There are 2 things you must do after your case is filed: (1) attend the meeting of creditors (aka the 341 hearing); and (2) complete a debtor’s education course via phone within 75 days from the date your case was filed. The 341 hearing is sometimes referred to as the meeting of creditors because your creditors can attend the meeting and ask you questions about the information contained in your petition.