Filing for a Minnesota bankruptcy can often be the only possible way you can save yourself from a looming foreclosure of your home and property and the continual harassment you face from your creditors in the event of not being able to pay off your debt. Filing of bankruptcies isn’t however a process as simple as it seems. You need to explain to the presiding bankruptcy trustee or judge how you got into such a situation and also give a detailed account of all your property and assets. Since there are a number of legal formalities involved in the process including tedious paperwork, it’s a lease a good idea to consult an experienced bankruptcy attorney to help you out. Filing a Minnesota bankruptcy is a huge step that can affect your credit score and your lifestyle in the coming years. That is why the advice and guidance of an attorney can be invaluable at this time.
Chapter 7 of Minnesota Bankruptcy
Chapter 7 of Minnesota bankruptcy is one of the two different types of bankruptcy claims. Chapter 7 bankruptcy is the option that allows for liquidation of your assets in order to discharge your debt. This means that your non exempt property can be seized by a bankruptcy trustee and sold away in order to repay your creditors. This way you are set free of any outstanding debt and get to make a fresh start to reorganize your financials. You must however remember that debts such as student loans, alimony, child support and taxes etc. cannot be discharged under the chapter seven of Minnesota bankruptcy.
Chapter 13 of Minnesota Bankruptcy
Chapter 13 of Minnesota bankruptcy is another option wherein instead of having to sell away your property to repay your debt, you can retain your property and simply to request to buy some time to pay off your debt. This way, if you believe that you will have enough money in the next few months that will enable you to pay off your debt; you can keep all your assets intact and buy some time from your creditors. You can be granted a pre specified period of time of 2 to 5 years in which you can choose to pay off your debt and avoid situations such as property seizures or foreclosures.
The 2005 Law for Minnesota Bankruptcy
A new law for Minnesota bankruptcy was introduced in the year 2005. This law seems to have a number of people baffled about filing bankruptcies ever since. Consulting an experienced attorney with however let you know that this law is nothing to be scared of. If you have an income that is relatively lower and don’t have enough money to pay off your debts, chances are that you are still eligible for filing a Minnesota bankruptcy. Just get in touch with the good bankruptcy attorney who can guide you and help you have your debts discharged.