The Benefits of Bankruptcy as Explained by Our Experienced Minnesota Bankruptcy Lawyer

The decision to file for bankruptcy and retain a bankruptcy lawyer is not easy by any means. And there are a number of reasons why you’ve found yourself in this financial downward spiral: unexpected illness, job loss or divorce. There’s nothing to be ashamed of, and starting fresh could be a great solution for your situation. So, instead of focusing on the negative side of filing for bankruptcy, consider the benefits you stand to gain.

Stop Creditor Harassment

When you file for bankruptcy, creditors can no longer contact you regarding missed payments, demanding that you make good on your debt. However, make sure to list those creditors on your application, as if the creditor is not aware of your bankruptcy filing, he can still contact you demanding payment.

Avoid Foreclosure

Another advantage of filing for bankruptcy is that bankruptcy stops the foreclosure process. The automatic stay goes into effect as soon as you file your petition, and this applies to both Chapter 7 and Chapter 13 filers.

A Fresh Start

If you file for Chapter 7 bankruptcy, you sell off non-excluded assets and use those funds to pay as much debt as you can. The rest of your unsecured debt is then discharged, allowing you to start fresh.

If you file for Chapter 13, you can keep your assets, and use your income to make payments on your debt. The payments are generally restructured so that you can afford them. Payments are made by the trustee of your case. Either way, you’re able to regain some financial control of your life.

For more information on filing for bankruptcy, contact us.