How do you start the process of choosing the best Minneapolis bankruptcy law firm? This is an excellent question. Whenever I have someone ask me if I happen to know a good bankruptcy lawyer in Denver, Colorado, I say no but I can help you choose an awesome lawyer. 

There a number of life circumstances that cause people to file bankruptcy in Minnesota. Among these reasons are job loss, reduction in income, serious illness, and other unforeseen circumstances that leave people in a financial situation wherein they are unable to pay their debts. Many Minnesotans struggle with an addictions such as gambling, drinking, substance abuse, and compulsive spending. Many of these same people would be tremendously benefited by filing for chapter 13 or chapter 7 bankruptcy but fail to do so due to fear or shame for having their addictions brought to light when they file their bankruptcy case. This should not be so. 

A chapter 13 bankruptcy is a great way for Minnesotans struggling with their finances to manage their debts. In a chapter 13 bankruptcy case the debtor (what you call a person who files for bankruptcy) pays as much as they can afford, each month, in a 3 to 5 year repayment plan, after which they receive a discharge of their remaining debts.

Filing for bankruptcy helps thousands of Minnesotans deal with, and eliminate, debt, each year. Many people contemplating filing for bankruptcy often wonder if they should be paying back their creditors and using their credit cards up until when their bankruptcy is filed. The short answer is, “no,” as using credit and paying back creditors does not benefit a person who will be filing for bankruptcy. In fact, doing this can actually cause issues in that person’s bankruptcy case. 

Bankruptcy is very often the very best way for an individual to deal with their debts and regain control of their financial circumstances. Both chapter 7 and chapter 13 bankruptcy cases often afford a great deal of relief to debtors (what you call people who file a bankruptcy case).  In both types of cases, the debtor is protected against most types of debt collection actions that could be taken by their creditors. This protection from creditors begins immediately from the very day a debtor’s chapter 13 or chapter 7 case is filed and typically lasts through their entire case, with certain limited exceptions. The automatic stay against creditors is one reason why filing for bankruptcy is usually the best tool a person can use to take care of their debt problem.

Unfortunately, I have witnessed the carnage that can occur when someone thinks it is a good idea to file Chapter 7 Bankruptcy on your own. I feel bad for people who do this. I feel worse for people when I see the looks on their face when they realize what deep trouble they are in because they thought they could save a few dollars bypassing a good bankruptcy law firm, and in the end, that desire costs them far more than a good bankruptcy lawyer. Oh sure, there are software programs out there and organizations that crow about filing bankruptcy yourself. Some of these organizations are even non-profit and I think mean well.

     You got the headline right. If you live in Minneapolis, MN and you are thinking about debt consolidation vs bankruptcy, forget debt consolidation right now. I feel bad for people suffering with debt. I know you want to pay the debt, we all do. But, debt consolidation is a waste of time, energy, and money. First, who do you trust to help you with this? Many of the “debt consolidation” companies are owned by the credit card companies so who do you think they are there to help?

     How do you file a Chapter 7 Bankruptcy in Minneapolis, MN by relaxing? Easy, you reach out to LifeBack Law Firm! At LifeBack Law Firm, we do most of the work while you relax. At LifeBack Law Firm, we pamper our clients who have suffered enough as it is. Here is the thing, at LifeBack, we have no bankruptcy worksheets to fill out. We pull asset and credit reports for you and gather much of the information that is needed to file Chapter 7 Bankruptcy in Minneapolis. 

Filing a chapter 13 bankruptcy is a great way for many Minnesotans to deal with their creditors and get rid of debt.  In a chapter 13 bankruptcy, the debtor (the legal term for a person who files a bankruptcy case) makes monthly payments to their creditors in a three to five year repayment plan, after which they receive a discharge of their remaining debt. 

When a person files a chapter 7 bankruptcy case in Minnesota, they can choose what to do with their secured debts such as home mortgages and car loans.

Boating could very well be considered the quintessential Minnesota pastime! With 10,000 lakes (well, 11,842 lakes to be exact) it’s no wonder Minnesotans love to go boating. For many Minnesotans, their boat is one of their most valuable pieces of property that they own. So, it is no surprise that many Minnesotans who are considering filing for bankruptcy wonder if they will be able to keep their boat after their case is filed.

     Over the years, I have seen some brave Minnesotans think it is a good idea to file bankruptcy themselves. Here is what they quickly discovered. For those I spoke with, they regretted filing bankruptcy themselves. Usually that regret surfaced after meeting with a Chapter 7 trustee and after listening to the trustee’s commentary and realized, they were in some trouble.

     What is a reaffirmation agreement in bankruptcy? First, it is important to note that a reaffirmation agreement is a subject discussed in Chapter 7 Bankruptcy, not Chapter 13 Bankruptcy. There is no such thing as a reaffirmation agreement in Chapter 13 Bankruptcy. In Chapter 13 Bankruptcy, collateral on a loan is either surrendered, paid on the plan, or paid outside the plan, with language on the plan that binds both debtor and creditor. 

     The prospect of filing Chapter 7 Bankruptcy can be daunting. For those of us with high anxiety, it can push you to the far edge of your comfort zone, and beyond. Even for those with lower anxiety, the thought of filing Chapter 7 Bankruptcy can be overwhelming. Unfortunately, there are ways to make a bad situation worse. These are two things you should watch out for when filing Chapter 7 Bankruptcy in Minneapolis, MN.