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.

Bankruptcy Help For Individuals

We see clients everyday who need our help to eliminate debt. Our job is to evaluate their financial circumstance and find the best solution to their problem. In some cases the best solution is to file for bankruptcy. In other cases the best solution is to talk to your creditors and work out a settlement of your debt. I do not know what your best solution is until we talk about your finances. I recently saw a client who owed around $50,000.00 and was thinking about using retirement funds to pay for the debt. Of course this was the only savings that this person had in their life. After we talked the client decided to file for a chapter 7 bankruptcy. The bankruptcy allowed this client to keep their home, car, retirement savings, and job. The creditors who were attempting to garnish wages were stopped by filing the bankruptcy, and the client was out of debt, and out of the stress that financial problems create. I have a lot of stories from clients we have helped by getting rid of the stress associated with debt.

Bankruptcy Laws In Minnesota

If you are filing for bankruptcy the rules are governed by the Federal Bankruptcy Laws. State laws may affect your bankruptcy filing for several reasons, the main reason being if you need to use the Minnesota exemptions. The primary reason or using the Minnesota exemptions are if you have equity in your homestead. The Minnesota homestead exemption currently allows you to use up to $360,000 to protect your home. You can also exempt retirement accounts for up to 1 million, using the federal exemptions. For most of our clients they will file using the federal bankruptcy exemptions.
I get asked on occasion is bankruptcy the right choice for me? The best answer is I do not know until I sit down and meet with the potential client to discuss all of the potential options. It is important to meet with you bankruptcy attorney to make sure that he or she understands your situation and can give you good advice. Bankruptcy law has a lot of traps that can cost clients money, so it is important to talk to your bankruptcy lawyer before making any repayments to friends or relatives.

Loan Workout in Minnesota

If you are thinking about settling your debt in Minnesota it is important to keep tax consequences in mind when you are settling the debt. In most cases you are responsible for the phantom gains from debt settlement income. A good example of this is if you owe $20,000 on a credit card debt and you settle the debt for $10,000 the creditor can and probably will send you a 1099 form for $10,000. This means that you could owe additional money for the settled debt. The other thing to keep in mind when are settling debt is that you also should look at bankruptcy to see if one option is cheaper than the other.
If you decide to settle debt it should be a business decision and it should be the cheaper alternative to bankruptcy. The nice thing about debt settlement as opposed to bankruptcy is that you do not have a trustee looking over your property and debt settlement is not public. If you are having issues with debt give our office a call at 952-294-0144.

Home Sales Prices Rising In Minnesota

A recent report showed that home sales prices have stabilized in the Minneapolis St Paul region.  It seems that we may be seeing the light at the end of a long tunnel of falling home prices.  There is no guarantee these gains will stay once the banks begin to ramp up their foreclosures following the settlement with the states.   It still seems like a good time to buy a home if you can qualify for the current interest rates and find a house at a good price.