Minnesota Bankruptcy Lawyer

Why hire an attorney?

The term "bankruptcy" is thrown around a lot these days. You probably have heard of large corporations filing for bankruptcy or you may even seen neighbors or friends filing for it. You may have never thought, however, that one day it could be you. It is important to understand that accepting bankruptcy as a solution to your financial problems is not the end of the world. In fact, it is the beginning of a new financial start for you and your family. Bankruptcy may come with some pretty negative connotations, but in reality it is simply a legal proceeding that can allow you to wash away your previous debts and begin fresh.

When a person cannot pay his or her bills, filing for bankruptcy can be the best solution. The right to file for bankruptcy is provided for by federal law and the proceeding will absolve you from all, or certain debts, while stopping creditor harassment. Filing for bankruptcy will also stop any creditors from taking property from you through repossession, home foreclosure or wage garnishment. The bankruptcy process takes time, patience and a lot of paperwork and you and your Minnesota bankruptcy attorney, from Heimerl & Lammers, will need to make an appearance in the federal court.

There are 4 different types of bankruptcy under the law. Chapter 11 bankruptcy is normally reserved for businesses and individuals with extremely large debts and Chapter 12 is provided for family farmers and fishermen. Most families and individuals, though, will either file for Chapter 7 or Chapter 13 bankruptcy.

Chapter 7 bankruptcy is considered the "liquidation" bankruptcy and will give individuals and families a fresh start. Under Chapter 7 bankruptcy, the federal court will grant that the individual is absolved from paying any unsecured debts including credit card bills, medical bills, utility bills, some bank loans and other debts.

Chapter 13 bankruptcy is a type of reorganization in which the federal court will put an individual on a payment plan so they can keep their belongings and still manage their debts. You will need to continue to make payments for a certain number of years, and, after this time, the remaining debt will be discharged. Chapter 13 bankruptcy acts as a debt consolidation plan.

Chapter 11 bankruptcyis similar to Chapter 13 but works with corporations and individuals who have an extremely high debt load, making them ineligible for Chapter 13 bankruptcy.

How an Attorney Can Help

Choosing to file for bankruptcy will make it possible for you to continue on with your life without worrying about the consequences of not paying those overdue bills and overwhelming debts. In addition to the advantages given above, bankruptcy can prevent your utilities from being cut off or can enforce that services are restored. You will also have an opportunity to challenge the claims of debt collectors who you believe have committed fraud or are trying to take more than what you owe. Most importantly, it will provide you with a sense of relief knowing that you can come home from work without worrying about those harassing phone calls and the overdue bills that are piling up.

The laws governing bankruptcy are complex and an incorrect or incomplete petition can cause the process to fail. At times, negotiations with creditors or even litigation in bankruptcy court are required to achieve the outcome you want. For many years we have been assisting people, like you, to achieve new financial starts and we welcome the opportunity to help you and your family.

Learn how to achieve a fresh financial start in life. Contact a Minnesota bankruptcy lawyer for helpful financial solutions to your debt problems.