There comes a time in many families’ lives that the overwhelming debt becomes more than just a problem- it becomes a burden. If your debt is starting to overrule your life, then it might be time to consider the option of bankruptcy. Bankruptcy is not just for large companies that are gone in over their head, nor is it for problem people who went a little shop crazy. Bankruptcy is a solution for anyone who has, for one reason or another, found themselves struggling with debt. You could have lost your job; you could be in danger of losing your home; you could be suffering from a serious illness; you could have just been divorced. Whatever the reason, filing for bankruptcy can provide you with a new beginning and a new outlook on life.
However, before you file for bankruptcy, there are five things you must do at home first. This will help prepare you for the bankruptcy process and ensure that you are ready for the journey ahead.
Contact a Minnesota Bankruptcy Lawyer
First and foremost, you will need to seek professional assistance. You cannot (and should not) go through the bankruptcy process alone. An experienced MN bankruptcy lawyer can help you through the paperwork and the process. Furthermore, a Minneapolis bankruptcy lawyer can assess your situation and help you understand what the best option is. Look for a MN bankruptcy attorney that offers a free initial consultation.
Choose the Type of Bankruptcy
There are four different types of bankruptcy. For the individual, there is the Chapter 7 “liquidation” option or the
Chapter 13 “reorganization” option. For the business, whether it is a corporation or a sole proprietor, there is the Chapter 7 “liquidation” option or the Chapter 11 “reorganization” option. There is also Chapter 12 bankruptcy but this is usually reserved for farmers and fishermen. Your Minnesota bankruptcy lawyer will be able to help you out with this decision.
Understand the Types of Debts
It’s important to note that not all debts will be wiped out through the bankruptcy process. Unsecured debts, such as your credit card bills, utility bills, medical bills and some loans will be discharged but secured debts most likely will not. You should be able to keep your home and other property if it falls under the exemption law. If you are unsure if your assets fall under exemption, speak to your MN bankruptcy attorney about it. Student loans, child support and spousal payments will also not be discharged.
Determine Joint or Single Filing
Finally, you and your spouse will need to decide whether it is in your best interest to file a joint bankruptcy claim or a single filing claim in your name only. There are several pros and cons to either case but the right answer can only be determined through a personal assessment of your situation. Under the Minnesota exemption law, filing for joint bankruptcy will mean that the exemptions are doubled in order to accommodate both members of the bankruptcy case. To determine if this is the best option in your case, contact a MN bankruptcy lawyer today.