Bankruptcy Options Which One Is Best For Me.

Most people who are thinking about filing for bankruptcy wonder which options is best for me. The choice on what type of bankruptcy file can be confusing considering the choices available. The most common type of consumer bankruptcy filings are chapter 7 bankruptcy and chapter 13 bankruptcy. If you have a small business and want to reorganize you may look at a chapter 11 bankruptcy.
The most common type of bankruptcy is a chapter 7 bankruptcy and for most people involves keeping your exempt assets, and shedding your unsecured debts. The most common type of bankruptcy is a no asset bankruptcy. In this type of chapter 7 bankruptcy your creditors will not get paid anything from your assets. The other type of chapter 7 case is an asset bankruptcy. In this type of bankruptcy creditors will be paid back from money collected from the bankruptcy estate. In Minnesota the most common reason for assets being available to the bankruptcy estate are using the Minnesota State Exemptions when filing.
The next most common type of bankruptcy in Minnesota is a chapter 13 bankruptcy. This is a bankruptcy that allows you to pay back your debt over the next 36 to 60 months. The difference in payment terms depends upon your income. If you income is above the median income you can do a 60 month payment plan, if you income is below the median you can do a 36 month plan. This type of bankruptcy works well if you have debt that cannot be discharged in a chapter 7 bankruptcy. Or if you have assets that you do not want liquidated in a chapter 7 bankruptcy. The chapter 13 bankruptcy option is a far better option for most people than debt consolidation. The chapter 13 allows all of your debt to be rolled into one payment that you make monthly. It stops all the interest on the debt and stops all collection activity.
If you are stressed out from debt that you know you cannot pay back, or if you have wage garnishments or bank levys, you need to talk to an attorney to determine if bankruptcy is a good option for you. In most cases the longer you wait to consult a bankruptcy lawyer the worse the debt becomes.