The term ‘bankruptcy’ is thrown around a lot these days. You most likely will hear of large corporations filing for bankruptcy or you may even watch others around you filing for bankruptcy. However, you most likely never thought that, one day, it could be you. It’s 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 start of a new beginning 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.

Understanding Bankruptcy In Minnesota

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 by the federal law and the proceeding will absolve you from all, or certain debts, and stop creditors from hounding you. Filing for bankruptcy will also stop any creditors from taking property from you through repossession, foreclosure or garnishment. The bankruptcy process takes time, patience and a lot of paperwork and you and your MN bankruptcy attorney will need to make an appearance in the federal court.

The Types of Bankruptcy

There are four different types of bankruptcy under the law. While Chapter 11 bankruptcy is normally reserved for businesses and individuals with extremely large debts and Chapter 12 bankruptcy is reserved for family farmers and fishermen, most families and individuals 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 unsecured 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 bankruptcy is similar to Chapter 13 bankruptcy but works with corporations and individuals with an extremely high debt load that make them ineligible for Chapter 13 bankruptcy.

In Chapter 7, Chapter 11 and Chapter 13 cases, filing for bankruptcy will ensure that the creditors are stopped immediately. Our Minnesota bankruptcy attorneys are trained in Chapter 7, Chapter 11 and Chapter 13 bankruptcy proceedings.

How a MN Bankruptcy Lawyer 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.

• You will be discharged of the legal obligation to pay most or all of your debts so you can have a fresh financial start.
• On your secured payments, you will be granted an opportunity to catch up on missed payments without worrying about foreclosure or repossession.
• It will put an end to wage garnishment and other harassing practices that debt collectors will do in order to collect a debt.
• 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.
• And, 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 overdue bills piling up in the corner.

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.