The decision to file a Chapter 13 bankruptcy case is not something that most individuals take lightly. It is only after thorough consideration, and with the advice of an experienced bankruptcy attorney, that most individuals commit to reorganizing their debts through the bankruptcy process. Filing a Chapter 13 bankruptcy has many benefits, including saving your home from foreclosure, stopping repossession and even keeping you from going to jail if you are behind on domestic support obligations. However, one major advantage that is often overlooked about filing a Chapter 13 case is the appointment of a Chapter 13 Trustee.

Our aim in this blog is not to discredit or offend other attorneys; our purpose is to inform individuals of the benefits of hiring a Minnesota bankruptcy lawyer verses a general practice attorney when you are contemplating filing bankruptcy. There are some types of law that are very specific and unique in how they are practiced and the rules that govern them that they require a special expertise in order to effectively represent clients. Bankruptcy comes to our mind because that is our specialty, but others include tax law, international corporate law, complex product liability and copyright and patent law.

What happens when you file bankruptcy? Firstly, the automatic stay provisions under the Bankruptcy Code prohibit your creditors from contacting you regarding your debt. Filing bankruptcy stops creditor harassment and those annoying and frustrating creditor calls. However, you are probably wondering what the process looks like - when will you have to go to court, how many times, what a trustee does, how long it takes, etc. We answer questions like these each day as bankruptcy attorneys.

Congratulations, you have successfully completed your bankruptcy and you are ready to take your first steps on the road to rebuilding your finances. A very important element of any sound financial plan is budgeting. Some people believe that budgeting is too difficult or that budgeting is only a way of denying yourself what you truly want. On the contrary, budgeting makes it possible for you to achieve the things you want by helping you manage your money. Budgeting can also help you save more money by revealing any issues or incongruences between your income and your expenses.

If you have ever experienced a financial crisis or have gotten behind on payments to a creditor, you have probably dealt with a collection agency. A collection agency is a company that is hired by your credit card company to collect the debt you owe on your credit card. Collection agencies use different tactics to collect debt but a collection agency can also be more flexible in arranging for repayment of that debt. However, once your credit card account is turned over to a collection agency, you will likely begin to feel the impact, for example:

Dealing with overwhelming debt and coping with the stress associated with a financial crisis creates emotional burdens and causes damage to your financial well-being. However, bankruptcy provides a real solution to a variety of difficult financial situations. For example, a debtor can discharge or “wipe out” unsecured debts through the filing of a Chapter 7 bankruptcy case or reorganize debts into a manageable repayment plan through a Chapter 13 bankruptcy case. Through the bankruptcy process, debtors learn where things spun out of control and how to handle or prevent debt in the future. In addition, when the bankruptcy case is completed, you are able to begin rebuilding your financial affairs.

Because each person’s financial situation is different, it is difficult to answer these questions without first taking the time to fully understand the circumstances that brought you to this point. Some debtors have the ability to repay some or all of their debts if they are given the opportunity to reorganize their debts into a manageable repayment plan. On the other hand, some debtors do not have any funds available to pay creditors after paying for their basic living expenses. This is the purpose of having different types of bankruptcy, so that debtors may find relief under the bankruptcy code according to their specific financial needs.

As consumers, we spend billions of dollars each year on goods and services, both online and in traditional stores. An increasing number of those purchases are made with some type of credit. As debt has increased, the need to protect consumers against credit fraud and unfair or deceptive trade practices has also increased. The Federal Trade Commission (FTC) is the federal agency that enforces consumer protection laws. Below are descriptions of the three most well known consumer protection laws and details about how each one is designed to protect you against unfair creditor practices.

Almost all of us will experience debt problems at some point during our lifetime due to a financial crisis such as a job loss or due to our own devices. Some individuals cause debt problems for themselves through poor spending habits, abuse of credit cards, gambling, co-signing loans for others or because of a failure to budget and manage money well. Because they feel their debt problems are due to something they did or failed to do, they may wonder, “Is personal bankruptcy a good option for me?”

According to a study conducted by NerdWallet Health, over twenty percent of Americans will struggle with medical debt this year. For some, the best alternative is to file bankruptcy. Medical bills have been an ongoing financial problem for many Americans for more than a decade. In 2009, more than 60% of individuals who filed for bankruptcy relief did so due to medical bills. According to a report published in the American Journal of Medicine, the number of individuals who had to file bankruptcy due to medical bills rose from 46% in 2001 to 62% in 2007.

If you are struggling with debt, you are not alone. Many Americans face this situation every day due to job loss, loss of a spouse, medical illness or other circumstances that prevent them from paying their bills. Whatever your situation may be, it is important that you understand that there are options available to help you manage this burden and recover financially and emotionally. One possible solution for dealing with debt is debt consolidation. Debt consolidation can help individuals who are struggling to make minimum monthly payments on their credit cards or other debts. However, in some cases, debt consolidation could create more problems than it solves. While it may seem practical to consolidate debts into one, lower monthly payment, you must first consider the pros and cons to debt consolidation.

Divorce is one of the top 5 reasons many debtors turn to bankruptcy. If you are going through this situation, know that you are not alone. The following is one woman’s story about how divorce and bankruptcy turned her life around, in ways she could never have expected.

Few things in life are of greater consequence to one’s physical and emotional well-being than financial hardship. Many individuals facing harassment from creditors have enough of an income to begin allocating toward their debts, but not enough to keep up and prevent the seizure of their assets. Many debtors turn to bankruptcy to find a fresh beginning.

Learning to manage money is a life skill everyone should possess, though it rarely gets taught in any formal educational setting. Money management skills are valuable to own at every stage in life, especially when trying to manage debt.

If you are in debt and looking for a way to get out, consider ALL of your options. When all of your options are on the table, take time to think through the advantages and disadvantages of each and how they will affect your life in the long run. Sit down with a legal professional, too, to discuss your options and get advice and opinions about which is best for your specific situation. 

The effects of filing bankruptcy are felt almost instantly. The moment you decide to file bankruptcy you will likely feel some of the stress fade because you know the end of your financial nightmare is in sight. Once your petition is approved, you can begin the journey to debt freedom, feeling lighter and happier than you have felt in a long time. Put the nightmare behind you and begin living the life you have been dreaming of.