At Kain & Scott, we believe that Chapter 7 bankruptcy should be a debt solution that helps you get a fresh start, not another problem that makes your financial situation worse. That’s why we are sharing do’s and don’ts from our team of qualified bankruptcy specialists to help you erase your debt fast while avoiding common bankruptcy pitfalls.
1. Do know the difference between what debt can and can’t be discharged by Chapter 7 bankruptcy
Did you know that, while Chapter 7 bankruptcy can eliminate many types of debt, not all of your debt can be discharged by filing Chapter 7?
Chapter 7 bankruptcy can erase your unsecured debt, but not your secured debt. The difference? The technical definition of unsecured debt is any type of debt that is not secured by collateral. Sound confusing? Think of it this way; debt that you acquired without putting an asset up for collateral is considered unsecured, which means hospital bills, credit card balances, retail store accounts, and any other unsecured debt, can be wiped away with Chapter 7 bankruptcy!
Secured debt, on the other hand, is treated differently in a Chapter 7 bankruptcy: this means that a chapter 7 discharge will remove your personal liability to pay your mortgage (your house is the collateral) or auto loans (where your vehicle is the collateral), but the security interest the mortgage company or car lender have in the collateral is not eliminated. So failure to pay your mortgage or car loan after a chapter 7 will result in foreclosure or repossession .
Some unsecured debt, such as student loans and most tax debt are also not eligible for discharge in most circumstances.
2. Do your research and find an experienced bankruptcy attorney
A common misconception of the general public is that, if an attorney advertises that they handle bankruptcy or specialize in bankruptcy, that there is some sort of additional educational requirement or certification involved. Not true! Many law firms advertise that they specialize in bankruptcy without ever taking a single case!
When filing Chapter 7 bankruptcy in Minnesota, make sure that the bankruptcy attorney you hire has the education and real-world experience to handle your case with accuracy and professionalism. At Kain & Scott, we’ve been helping Minnesota residents just like you erase their debt fast for almost 50 years. And, when we say we specialize in bankruptcy, that is exactly what we mean: we don’t just do bankruptcy, bankruptcy is all we do!
Some law firms may advertise a low price for their Chapter 7 bankruptcy services, but will surprise you with hidden costs and fees, greatly increasing the cost of filing for bankruptcy. At Kain & Scott, we have affordable flat-rate fees and no hidden costs. Plus, we’ll never charge you for your initial consultation and we proudly offer a 100% Money Back Guarantee!
2. Don’t forget about your credit score
While Chapter 7 bankruptcy can eliminate your debt, filing for bankruptcy does not improve your credit score. Your credit score is an important number that lenders look at to determine whether to give you financing or renegotiate a high interest rate. Without a healthy credit score, obtaining financing for the things your family needs is extremely difficult. Worse, once your credit score has dipped below average, it can be difficult to raise it again.
That’s why at Kain & Scott, we offer our clients a FREE 90 Day Credit Repair Program designed to repair your credit score and obtain financing from our list of trusted Minnesota lenders. We don’t abandon you like other law firms – we are dedicated to sticking with our clients from the first free initial consultation through the completion of our credit repair program!
To get started today on erasing your debt fast and repairing your credit, contact Kain & Scott for your free initial consultation. Our friendly and knowledgeable Chapter 7 bankruptcy specialists can file your bankruptcy petition within days and have your debt discharged in as little as 60-90 days!