When debt has you losing sleep at night, you may be wondering whether or not you are eligible to file for bankruptcy. You know that bankruptcy can give you the relief you need from the collections calls, the threats to sue you, and all of the things you can do nothing about. If you don’t have the money, you can’t pay the bills.
One question individuals ask themselves is whether or not they are allowed to file. There are some individuals who have some disposable income, but they don’t have enough to pay anything. This is when a person may not be eligible for Chapter 7, but they may be able to file Chapter 13, which is a restructuring of debt so that it can be paid back through a court approved repayment plan. The way to know which type of bankruptcy you should file is to have a means test performed by your Minneapolis bankruptcy attorney. You may be surprised what you find out about your finances.
Improving Your Future Situation
If you do not see the situation improving any time soon, it is imperative to do something now. If a hardship is temporary and you know your cash flow is going to increase within the following months or within the next year, then you may be able to get the situation under control with other options that are available. If not, then bankruptcy may be the answer.
Bankruptcy is especially the answer when most of your debts are unsecured. Unsecured debt includes charge card and credit card balances, medical bills, and other debts that may be in collections. However, there are some you may be stuck with, such as student loans and tax debt. If you have a car loan and/or a mortgage loan, then you may be able to reaffirm those debts so you can continue paying as usual.
Make Lasting & Positive Changes
Your Minnesota bankruptcy lawyer will help you make changes that are positive and will last so that you can have a better future financially. While there are some downsides of bankruptcy, such as having to take the 90 minutes of credit counseling, the fact it remains on your credit report for 10 years, and the record being a public one, you will be in a much better place. You are able to reboot and change the way you manage money. Because you have already seen the worst, you know everything that needs to change in order to manage money responsibly and successfully.
Contact A Minnesota Bankruptcy Attorney
If you are wondering whether or not bankruptcy is the right choice for you, your bankruptcy lawyer can assist you by reviewing your income, debts, assets, and other pertinent information and advise you as to whether or not the bankruptcy process would benefit your situation. To have your financial situation reviewed by a qualified attorney, contact the McKinney Law Office’s Minnesota office at 612-206-3706 or the St. Paul office at 651-379-4110 for a free consultation.
This law firm is a debt relief agency, and we help people file for bankruptcy relief under the United States Bankruptcy Law.