Bankruptcy attorneys in Cottage Grove MN Apr17

Tags

Related Posts

Share This

Bankruptcy attorneys in Cottage Grove MN

Does your financial situation look grim? Are you robbing Peter to pay Paul but you’re still coming up short? Bankruptcy may be your answer. Since 2008, Chapter 7 and Chapter 13 filings are up over 300%. In 2008 1 in 100 families filed bankruptcy where as in 2012 8 in 100 families filed. There are two main types of bankruptcy…Chapter 7 and Chapter 13.

Chapter 7 is also known as liquidation. This is done when reorganization or Chapter 13 is not a viable option and does not solve your credit problems or enough to pay off your debt by just liquidating. Note that there are non dischargeable debts such as recent taxes you owe, student loans and child support to name a few. Any business or person can file for Chapter 7 who are unable to pay for their debts, there is no debt ceiling or threshold. The Trustee in Chapter 7 is responsable for reviewing the documents the debtor filed with the court, meeting with the debtor and his attorney in what’s called the Meeting of Creditors, liquidating, or selling, all non exempt assets and paying the creditors. To be discharged under Chapter 7 you must correctly list all debts, assets, income and expenses, cooperate with the Trustee and give all the info requested and be honest and straightforward with the court. For more information look up Bankruptcy attorneys in Cottage Grove MN.

Those who can file Chapter 13 have a stable income and are able to commit to an up to 5 year financial plan. The trustee does everything he does in Chapter 7 along with taking the monthly payments and distributing the funds to the creditors and monitors the debtors’ progress with the monthly payment plan. To receive a discharge in Chapter 13 you must do everything in Chapter 7 and report any and all changed income, file all income taxes on time and stay current with all bills due after filing. See Bankruptcy attorneys in Cottage Grove MN.

There are two main types of bankruptcy, Chapter 7 or liquidation and Chapter 13. When you file creditors are supposed to stop contacting you, it’s called and “automatic stay” it prohibits all contact with the debtor.

 

Be the first to like.