It’s a disaster if someone is insolvent and unable to pay their dues. Declaring bankruptcy is a disaster and understandably causes a bout of depression. But if due to circumstances, someone reaches a situation in which they have to declare themselves bankrupt, it must be done with all due care and diligence. The Minnesota Bankruptcy law gives people the facility to declare bankruptcy in two ways: Chapter 7 bankruptcy, and Chapter 13 Bankruptcy. In fact these bankruptcy options are available almost all over America, informs one Minneapolis Bankruptcy Lawyer.
Declaring a chapter 7 bankruptcy is often the fastest and the easiest way to get the deed done and over with. However, according to Minnesota Bankruptcy law, Chapter 7 bankruptcy can be declared only if the income of your household is below the Median income for Minnesota. If you feel you’re having trouble understanding the laws, it’s better to hire a Minneapolis bankruptcy lawyer who can guide you with the bankruptcy process.
In chapter 7 bankruptcy, the bankruptcy court attaches trustees who take control of your assets and negotiate with the creditors. The creditors may also move the court to halt the bankruptcy proceedings, but if everything is in order, then you will be able to proceed easily. Even after you declare bankruptcy Minnesota bankruptcy laws do allow you to keep some assets with yourself. This can include essentials like your home, vehicle, life insurance, etc. There’s an upper cap to every asset that you can keep, and a Minneapolis bankruptcy lawyer can study your assets and tell you how much you’ll be able to keep after filing for bankruptcy.
If the bankruptcy court feels that you’re in a position to pay off your debt, and have a higher income, they can prevent you from filing chapter 7 Minnesota bankruptcy. In this case you may file for chapter 13 bankruptcy. Under this system you’re allowed to pay off your debt over a period of three or five years. So your debts are delayed or re-organised instead of being wiped out. According to the Minneapolis bankruptcy lawyer we consulted, this bankruptcy option is available to all individuals and sole proprietors.
Under chapter 13 bankruptcy, you’re not free of debt, and you will have to pay the creditors after you’ve paid for necessities like food, shelter, etc. The trustee appointed by the court will review your income and prepare a payment plan for you. You’ll then have to stick to the plan, and make sure all payments are made. In case you do not make the payments, your assets may be taken over by your creditors as per the Minnesota bankruptcy law, the Minneapolis bankruptcy lawyer told us.
If you’re able to pay the planned amount as per schedule, the rest of your debts are written off, and you’re free from credit again. So this type of bankruptcy plan can help you hold on to some of your precious assets while you struggle to get your life back on track, or wait out the bad period. Remember to consult a qualified Minneapolis bankruptcy lawyer if you wish to make your Minnesota bankruptcy experience easier. After all, when you have so much trouble already on your, it is wise to leave the bankruptcy hassles to an expert who will give you sound and experienced advice.