Job loss, a medical emergency or divorce – these days, we are all one life-altering event away from financial devastation. The constant struggle to pay off bills you can’t afford is an awful way to live. It feels like you are swimming against a tidal wave, and it leaves you gasping for air for all the time.
When you are in debt, this feeling almost never leaves you. And when it does, it seems like that’s when you receive a call from a collection agency that reminds you of the difficult situation you are in. When this happens, it is wise to contact a knowledgeable bankruptcy attorney like myself, who can guide you toward a fresh start.
Filing for bankruptcy is not an easy decision, as so many want to live up to their financial responsibilities. Unfortunately, this is not always possible, and the best choice is to avail yourself of the legal right to start over. Once the choice to file for bankruptcy has been made, you will experience an immediately sense of relief that comes from getting out from under financial circumstances beyond your control.
It is life affirming to get a fresh opportunity to begin anew.
If you are facing out-of-control debt, it is wise to immediately seek the counsel of an experienced bankruptcy lawyer. Financial distress can come from a myriad of situations. Whether it is trouble stemming from job loss, divorce, medical emergency or something else, personal bankruptcy provides a legal and acceptable method to get out of debt and get a fresh start.
Folks often want to learn more about their options through bankruptcy. They have typically heard about Chapter 7 and Chapter 13, but are not sure about the difference between the two. Through a detailed, individual consultation, we will examine your finances and determine your best option.
Let’s take a quick look at these two options…
Chapter 7 Bankruptcy
- Chapter 7 is a debt elimination program
- It usually takes around 90 days to complete the process from filing to debt discharge
- There is no debt repayment plan
- Some assets might need to be liquidated, but there are extensive exemptions
- To qualify for Chapter 7, you will need to take a means test
Chapter 13 Bankruptcy
For those who do not qualify for Chapter 7 or have significant assets or property, Chapter 13 bankruptcy provides another option.
- Chapter 13 is a debt reorganization and repayment plan that help you escape a wall of debt while protecting assets
- Chapter 7 bankruptcy is a debt elimination plan, while Chapter 13 helps reorganize debt so it can be addressed more manageably
- Depending on the determination of the bankruptcy court, repayment will last either three or five years
- After the successful conclusion of the repayment period, all remaining debt will be discharged
- Chapter 13 gives you more flexibility when dealing with back taxes, mortgages, or repossessions
Once bankruptcy proceedings have begun, you will stop getting harassing phone calls and nobody will be able to sue you or bully you into thinking you have to pay money you do not have. You may be able to keep most, if not all, of your property and possessions, or get more time to pay your debts, if you do have steady income
As a skilled Chapter 7 and Chapter 13 bankruptcy attorney, I have helped clients find a fresh start for nearly 25 years. There comes a certain point when no matter how much you want to dig yourself out of debt, you simply cannot.
This is where we at Moshier Law Offices can help you.
Many successful people have found themselves in difficult financial circumstances and have used bankruptcy as a means to get a fresh start. It is important to see this time in your life as an opportunity and not as a failure.
The bankruptcy laws exist for this very reason!
Law Offices of Becky A. Moshier
St. Paul, Minnesota