MN Bankruptcy: Know The Facts And Common Misconceptions

Filing a MN Bankruptcy can seem like an overwhelming process and it certainly can be in some instances. But it is critical for individuals considering relief through bankruptcy to take the time to consider the hardships they already have, and then to think about the benefits bankruptcy may offer. When we consider the long-term effects of defaulted agreements and financial obligations and how this may impact our future needs we can begin to see the immediate benefits to filing bankruptcy rather than continuing to struggle with financial hardship. There is a great deal of misinformation out there; much of it is the product of the credit industry in an effort to discourage individuals and businesses from seeking the relief they need. Let’s take a closer look at some of the common concerns many people consider when determining if bankruptcy is right for them. Don’t be fooled by aggressive creditors; know the facts and know your rights!

Bankruptcy Is For People Who Are Poor or Irresponsible - False

Many people are under the impression that Bankruptcy in Minnesota is for people who are poor or reserved for individuals who have poorly managed their expenses and are unsuccessful and this is absolutely false. Many people who have enjoyed great financial success have looked to bankruptcy for the financial restructuring that is needed in order for them to continue to be successful. Bankruptcy is not the path to ruin or a harbinger of the collapse of your financial stability. In fact many prominent individuals have steered themselves back to financial stability and profit through bankruptcy protection and manageable debt repayment plans. Most of us are aware that bankruptcy legislation went through a major overhaul in 2005 building in delay for individuals to file but by no means does this require that one must be in total dire straits with one’s finances in order to file a bankruptcy case. And there are many allowable exemptions in place to protect ones assets and property.

When Filing Bankruptcy You Have To Worry About How You Are Perceived By Others - False

Many individuals who are considering Filing a MN Bankruptcy needlessly burden themselves with concerns over how they will be perceived by their peers and business partners. Bankruptcy filings are public record but unless someone’s actively looking for information the bankruptcy filing information will likely never come to light. Personal, consumer-based filings are seldom published and even when they are made public these postings generally go unnoticed by the vast majority of people. Even if it does become well known that you have turned to bankruptcy for relief most people now understand that this can be a sign of new potential and revitalized growth. The main concern for anyone confronted with financial hardship should be their own well-being and not how they are perceived by others.

Bankruptcy Will Negatively Impact Your Credit Standing For A Long Time - False

One very common misconception is that MN Bankruptcy disables one’s credit standing and excludes them from the financing options much of our society relies on. People are led to believe that financial institutions and credit lenders will never do business with them again making it nearly impossible for them to own property or be extended credit moving forward. This is completely false. If you are seriously considering bankruptcy your credit is likely already being negatively impacted. By filing bankruptcy one can begin a fresh start with their credit and within a short time again be considered for financing on lines of credit, real estate loans and automobile loans. Bankruptcy can, in many cases, be a much better option than debt consolidation or third party services that claim provide relief similar to the protections assured through bankruptcy. Creditors have no legal obligation to work with these services as they do under bankruptcy protection and often use these services to mine valuable information needed in order for them to secure judgments and liens on property and assets under the false pretext that this information is needed in order for them to develop the best plan for you. If a creditor expresses desire to work with you to resolve a debt and the conversation is geared more towards collecting financial data as opposed to brainstorming solutions that may work for you it is likely the creditor is assessing their odds on a pending legal action and no longer desires to resolve the matter voluntarily with you.

Bankruptcy Assures You Of Protection And Security – TRUE

The most important thing to understand about the bankruptcy process is that it is established for your protection and security. Bankruptcy is part of the U.S. Constitution and provides relief to all who qualify. Bankruptcy is not a sign of your failings. Another very important thing to understand about the bankruptcy process is that it your creditors are required by law to adhere to the protections provide within and immediately halt their actions being taken against you to collect on their claims. Many creditors claim to offer loan adjustments and repayment plans that can accommodate your financial needs yet they are under no legal obligation to do so as they would be under bankruptcy. Many creditors will continue with their legal proceedings while claiming they are in the process of developing a plan that is right for you. Bankruptcy assures you the honesty and transparency many creditors fail to provide to their customers who have gone into default. Bankruptcy in Minnesota has allowed countless individuals and businesses to recover from financial hardship which has overwhelmingly burdened them and it can do so for you as well!

Sign up for a free, no-obligation bankruptcy consultation today by contacting one of our 8 convenient and professional Minnesota offices.

Brainerd Bankruptcy Lawyers MN - 218-822-3300

Eagan Bankruptcy Lawyers MN – 612-843-0525

Eden Prairie Bankruptcy Lawyers MN - 612-843-0524

Maple Grove Bankruptcy Lawyers MN - 612-843-0529

Minneapolis Bankruptcy Lawyers MN- 612-843-0527

Roseville Bankruptcy Lawyers MN - 612-843-0523

St Cloud Bankruptcy Lawyers MN - 320-252-0330

Woodbury Bankruptcy Lawyers MN - 612-843-0526