There is a misconception that not everyone qualifies for bankruptcy. If someone makes over a specific amount of money, they believe that they cannot file.
The good thing about the U.S. Bankruptcy Code is that it does give everyone the opportunity to get their debt under control. It is understood that circumstances change and that can make debt that was accumulated years ago suddenly unaffordable.
If that is the case, you will want to speak with your Minneapolis bankruptcy lawyer about your situation so that you can see what kind of bankruptcy you qualify for you.
Keeping Assets In High Asset Bankruptcies
If you have a lot of assets and you are afraid of losing everything, there are options for you. Rather than filing Chapter 7 bankruptcy, which is usually for those with few assets or none at all, you can opt for Chapter 13.
Chapter 13 bankruptcy allows you to create and put into effect a repayment plan so that creditors can receive some or all of the money that is owed. The payment plan may take place over a 36 to 60 month period. Once paid back, the bankruptcy is discharged. In the process, you have lost no assets and you have wiped your slate clean.
In Chapter 13, you are able to include unsecured and secured debts, whereas Chapter 7 only allows unsecured debts.
If you have a high income and a lot of assets, it may be suggested that you go through Chapter 11 bankruptcy. Although you may have a high income, it is very possible for your debts to be higher. While Chapter 11 is typically reserved for businesses, it can be used as a method for high income filers to restructure their debt so they can better afford it.
Qualifying For Chapter 7
To qualify for Chapter 7, your Minnesota bankruptcy attorney will determine whether or not you have the means to pay back any of your debt. In these cases, the filer usually has no assets or very few and the few assets they have fall within the state or federal property exemptions. These cases are frequently referred to “no asset cases.”
Basically, if you are unable to afford your debt, regardless of how much money you make or how many assets you have, you qualify for bankruptcy. The only way you do not qualify is if you can afford your debt. There are times when it is found through the required credit counseling that all a person needs to do is tighten their belt in some areas and place the money in others. In other words, there are occasions when it isn’t so much about not affording debt as it is better money management.
Contact A Minneapolis Bankruptcy Attorney
There is a misconception that there are a lot of people who do not qualify for bankruptcy. The fact is that the U.S. Government has given everyone a chance to become free from their dire financial situations. However, the exact financial situation determines what kind of bankruptcy is filed. To learn more about how bankruptcy can help you toward a better financial future, call the McKinney Law Office’s Minneapolis 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.