Filing for bankruptcy is not an easy decision, nor is it an easy process. Not only do you have to get over the emotional hurdle of filing for bankruptcy, but you will also need to look into paperwork involved in the process. There are several different types of bankruptcy and it’s important that you decide which the best option for you is. Chapter 7 bankruptcy is the most common type of consumer bankruptcy and may be the right alternative for your financial situation. In Chapter 7 bankruptcy, the creditors will stop hounding you and you will be able to move on with your life without worrying about the overwhelming debts holding you back.

Understanding Chapter 7 Bankruptcy

Here are a few facts about Chapter 7 bankruptcy:

• Chapter 7 bankruptcy is often referred to as “liquidation” or “straight” bankruptcy.
• Chapter 7 bankruptcy will stop all creditors and wage garnishment. This is referred to as “automatic stay.”
• In Chapter 7 bankruptcy, the debtor is required to “liquidate: or sell, non exempt property in exchange for a discharge of your debt. These proceeds are distributed to the creditors.
• Many people will assume that, with Chapter 7 bankruptcy, they will lose all their secured debt as well, including their home and vehicles. This is actually not the case. It is possible to keep your home and car and other secured debts up to a certain amount.
• Chapter 7 bankruptcy is used to eliminate your legal obligation to pay unsecured dischargeable debts
• Under Chapter 7 bankruptcy, these debts may include unpaid medical bills, credit card bills, utility bills and some bank loans.
• Although most debt is dischargeable in Chapter 7 bankruptcy, some debt is not. This may include court-ordered fines, tax debt, debt incurred by fraud, student loans and child support.

Chapter 7 Bankruptcy Process

The first thing you will need to do if you are considering bankruptcy is to contact a Minnesota Chapter 7 bankruptcy attorney. Heimerl & Lammers have nearly 30 years experience in MN Chapter 7 bankruptcy law and can help you decide if Chapter 7 bankruptcy is the right option. If so, Minnesota Chapter 7 bankruptcy cases are handled in this manner:

• First, contact a bankruptcy attorney to assess your financial situation
• Go through your financial records and prepare documentation to file to the federal courts. This will include your income and expenses, your property and possessions and the names and addresses of your creditors. As soon as this documentation is filed, the creditors will stop.
• Attend a court hearing on a date determined by the courts. Your Minneapolis Chapter 7 bankruptcy attorney will be with you for this hearing which will go over your documentation to determine if everything is correct. The court will agree to the terms of bankruptcy and your unsecured debts will be discharged.

It’s important to always remember that bankruptcy is not the easy way out. Furthermore, it is not a shameful or dishonorable option. Bankruptcy has helped millions of families and hardworking Americans get back on their feet when times have been tough. Right now many families are still struggling to put the pieces together after the economic recession. With unemployment still high and home foreclosures skyrocketing, everyone needs to know that there is another way out of this sea of debt. Chapter 7 bankruptcy may not be something that you were planning but, in this unpredictable economy, it is nice to know that there are options out there. Is Chapter 7 bankruptcy the right option for you?

To schedule a free consultation to discuss bankruptcy with one of our Minneapolis area bankruptcy attorneys, please contact Heimerl, & Lammers, LLC.

Heimerl & Lammers practices in all eighty seven counties of Minnesota including, Hennepin County, Ramsey County, Scott County, Carver County, Washington County, Anoka County, Wright County, Sherburne County, Chisago County, Isanti County, Stearns County, Dakota County, Cass County, Blue Earth County, Olmsted County, Sibley County and St. Louis County.

We represent Minnesota Bankruptcy Law clients throughout the Twin Cities including Minneapolis, Champlin, Brooklyn Park, Brooklyn Center, Eden Prairie, Edina, Excelsior, Hopkins, Long Lake, Lino Lakes, Maple Plain, Minnetonka, Monticello, Mound, Osseo, Otsego, Rogers, Saint Bonifacius, Saint Paul, St Paul, Spring Park, St Louis Park, Wayzata, Woodbury, White Bear Lake, Plymouth, Maple Grove, Eagan, Eden Prairie, Burnsville, Bloomington, Buffalo and throughout Minnesota.

Disclaimer: We are a debt relief agency. We help people file for bankruptcy under the Bankruptcy Code.