Why choose Chapter 7 or Chapter 13 bankruptcy?
If you’ve been struggling to pay off credit cards, mortgages or other bills, you may have considered filing for bankruptcy to help alleviate your financial stresses or to stop creditors calling day and night.
If you've been struggling to pay off credit cards, mortgages or other bills, you may have considered filing for bankruptcy to help alleviate your financial stresses or stop creditors calling day and night. But many people believe that if they declare bankruptcy, they will lose everything in the process. That, however, is highly unlikely. Bankruptcy protection is intended to be just that – protection for ordinary Minnesotans from the credit card companies and lenders.
Consulting an experienced bankruptcy attorney is really the only way to determine what course of action is right for you and your family. After all, each case is unique and you could end up benefiting more from one plan than another. But before you talk to a lawyer, you should familiarize yourself with the two most common types of bankruptcy and the different ways each will affect your debts and lifestyle.
Chapter 7 bankruptcy is the most common way Americans choose to remedy their debt. Under this type of filing, unprotected assets will be “liquidated” in order to achieve the fastest resolution to your debt. However, almost all valuables and property like your home and car can be protected from liquidation. In fact, Atlas Law Firm is able to protect all of the assets for 98 percent of its clients. And, the whole process is typically over in a few months, leaving you free from hassling by the credit card company.
Chapter 13 bankruptcy consolidates your debt into regular monthly payments that take place over a period of a few years, usually three to five. You propose a monthly payment to the court based on what you can afford to pay. At the end of your plan, any remaining balances on your debts are discharged, i.e. wiped out. This can make your debt easy to manage and reduces the amount you owe overall, while you keep your home, car and many other assets. The bankruptcy lawyers at Atlas Law Firm can also help you to stop a foreclosure and remove a second mortgage from your home in chapter 13 bankruptcy.
An experienced Minnesota bankruptcy lawyer can guide you through this process and help determine which course of action is best suited to your case.