The following story may sound similar because many American struggling with credit card debt did not incur that debt by purchasing luxury items, taking expensive vacations, or buying unnecessary personal items. In many cases, a person struggling to pay credit card debt incurred that debt because of a financial crisis.

Are you wondering if you should file a bankruptcy to get rid of your debt?  You have likely read information on the Internet and talked to friends, family, or co-workers who filed bankruptcy successfully, but you are still unsure if a bankruptcy is the best way to deal with your debt problems.  If you are considering a bankruptcy filing, you need to consult with a qualified Minnesota bankruptcy attorney before you make any final decisions. 

Are you struggling to pay your debts each month? Do you feel hopeless when you think about your financial situation? Do you wish there was someone who could help you with debt management in Eagan, MN?  If so, you are not alone.  Many people are facing the same debt management problems that you are facing. They do not have the money each month to pay their living expenses, bills, and debts.  The stress and anxiety from dealing with their financial problems leaves them feeling hopeless and defeated.

The amount of student loan debt owed by Americans has surpassed the total credit card debt owed in this country. The cost of receiving a college education continues long after the student receives his or her diploma in the form of student loan payments.

The first month you are unable to pay your bills, you may feel a little stressed but you assume you will simply catch up next month. The second month you are short on money to pay bills you may feel worse, but it is only a couple of months so you will catch up.  Unfortunately, the more time that passes, the harder it is to catch up on past due bills. This scenario may occur for a number of reasons; a loss of income, even a temporary loss of income, can quickly create a financial crisis.  If you or a family member suddenly becomes ill, the medical bills and lost time from work quickly deplete your savings. What can you do to get out of debt?

Are you searching for the best bankruptcy lawyer in Woodbury, MN? The attorneys at Kain & Scott have one goal — to help individuals and businesses who are experiencing financial troubles. You have suffered with debt problems long enough. You deserve to get on with your life without the threat of being sued by a creditor or harassed by a debt collector. 

We often have clients come into our office and ask, "Why do I need to include all of my debts in my bankruptcy?" Some people want to pay back some of their creditors while others want to avoid certain creditors from knowing about the bankruptcy. For example, a client comes into the office for a bankruptcy consultation. When we discuss the types of debts she owns, she tells us that she does not want to include all of her debts in the bankruptcy case because she owes her parents money and she must pay that money back.  She also does not want her parents to know that she is filing bankruptcy. 

Bankruptcy law was created to provide individuals with a way to resolve debt problems. Some people assume that you only need to file bankruptcy if you are "bad with money" or you abuse credit; however, this is not true.  While some people who file bankruptcy do so because they got into trouble with debt, most people need the help of the bankruptcy court because of a financial crisis caused by the loss of a spouse, unemployment, a failed business, divorce, personal injury, accident, or sudden illness. You can experience a financial crisis at any time — bankruptcy can help you recover and rebuild your credit following that crisis. 

As part of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), Congress made consumer credit counseling mandatory as part of the bankruptcy filing process. A debtor must file a certification that states the debtor completed consumer credit counseling within 180 days of the filing of the bankruptcy case unless the debtor is exempt from the requirement to take the course. Exemptions are extremely limited and only apply in a very small percentage of cases.

In Minnesota, owning a cabin is the ultimate dream. You have likely saved up for many years to be able to buy one, but now a recent financial crisis (i.e. job loss, medical bills, divorce, etc.) has made it hard to keep up with all of your bills. You may be worried that if you file for bankruptcy you will need to sell or let go of your cabin that you worked so hard to buy. However, when you file bankruptcy, you do not lose all of you assets as many people believe. In most cases, debtors are able to keep their assets while eliminating their debts.

In Minnesota, owning a boat is a rite of passage. You have probably saved up for years to be able to buy a boat but now a recent financial crisis (i.e. job loss, medical bills, divorce, etc.) has made it difficult to keep up with your bills. You just do not have any money left over each month after paying your necessary living expenses to pay your debts. You are worried that if you file for bankruptcy, you will lose your unnecessary assets such as your boat. You do not need to worry. Many boat owners file for bankruptcy relief and keep their boats they’ve worked so hard for.

Not all debts are the same.  Some debts are unsecured (i.e. credit card debt) while some debts are secured (i.e. mortgages).  Most people think of a mortgage as “good” debt because as you pay this debt down, you are increasing your net worth because the equity in your home is increasing. Furthermore, a mortgage is a debt that has a purpose — to provide a home for you and for your family. 

It is easier than you think to get into trouble with credit cards. You begin with one card and before you realize it, you have several credit cards with substantial balances. You may have several major credit cards in addition to store credit cards. Retailers entice customers to open an account by offering a discount on your first purchase. Of course, you only receive this discount if you charge the purchase on your new account. You open the account to “save money” with the intention to pay off the credit card next month. Unfortunately, many people find themselves making the minimum payments even though their intentions were to avoid them. By the time the balance is paid off, you have paid more money in interest than you saved on your first purchase.

Face it, in today's world, credit is almost always necessary. From buying a house, financing a new vehicle, or paying for higher education. The key is to manage credit wisely after bankruptcy. Some people believe that if they file bankruptcy they will never be able to qualify for credit again, but this is not true.

What is Debt Consolidation?

If you are struggling with debt, you may have considered debt consolidation but are unsure if it is right for your situation. Furthermore, you may be confused by the various types of debt consolidation. In its basic form, debt consolidation  combines several debt accounts into one monthly payment. For some people, this may be an affordable solution to debt problems; however, you should only make this decision after discussing all of your options with an experienced attorney.