There are a few different reasons to file for Chapter 13. Probably the first one is if you are not qualifying for the Chapter 7.
Jan. 11, 2023
If Unexpected Medical Bills Have Left You in Debt, Filing for Bankruptcy in MN May Be Your Best Option
After falling into debt due to a number of medical bills, Richard and his wife filed for bankruptcy in 2008 – a decision that he acknowledged felt like a last resort at the time. Just like many people, Richard had common misconceptions about bankruptcy.
No matter how well off an individual is financially, an unexpected medical diagnosis can cause hospital bills to add up quickly. This is precisely what happened to a Florida resident named Richard, according to a piece he wrote for USA Bankruptcy Guide, an online resource for individuals considering a filing.
After falling into debt due to a number of medical bills, Richard and his wife filed for bankruptcy in 2008 – a decision that he acknowledged felt like a last resort at the time. Just like many people, Richard had common misconceptions about bankruptcy. For example, he thought that it meant he would lose all the assets he owned – including his house and vehicle.
He soon found out that his assumptions about bankruptcy were wrong, and realized that it was much easier than he had ever anticipated. With the help of a bankruptcy attorney, Richard and his wife arranged to make payments toward their home and car so that they were able to keep both of these important belongings.
“The main thing we learned from the whole bankruptcy process is that we waited too long,” wrote Richard. “Once it became apparent that bankruptcy was our best alternative, we should have just gone ahead and done it instead of agonizing about it for many months.”
Don't wait to begin your road to financial recovery. Contact Atlas Law Firm, a Twin Cities bankruptcy law firm, today. Our experts can advise you on the steps to take to secure a filing and help you through this process.
The three common triggers for bankruptcy are unemployment, medical expenses, and divorce. Unemployment can trigger bankruptcy, which is pretty straightforward.
The trustee has a duty to conduct due diligence, and that basically means reviewing the documents that are filed by the debtor and then holding a hearing called a Section 341 hearing in which the trustee asks some standard questions of the debtor.