Questions To Ask Your Bankruptcy Lawyer
Bankruptcy attorneys ready to give you answers
The bankruptcy lawyers at Sugar Creek Legal Services know how important it is for you to understand your situation. Bankruptcy laws are complex, and we can assist you through the difficult and stressful process of dealing with them. We hope that the answers to the following questions help. Contact our Minneapolis bankruptcy attorneys if you have others.
- What do I need to do to begin the bankruptcy process?
- How will I know that declaring bankruptcy is right for me?
- What debts does bankruptcy not cover?
- When does filing Chapter 7 make sense?
- Which bankruptcy option wipes the slate clean?
- When does filing Chapter 13 make sense?
- How long does a bankruptcy stay on my record?
- Will filing for bankruptcy end those calls from creditors?
What do I need to do to begin the bankruptcy process?
Your first step is to inventory your past and present debts. You will also need a list of your assets to include in your petition in the bankruptcy filing. You will also need a complete list of creditor and account addresses. Schedules of assets and liabilities with a statement of your financial affairs comprise the petition you file with the bankruptcy court, accompanied by a filing fee. Your bankruptcy lawyers can help assist you with ensuring this accounting of your debts and assets is complete before officially starting the process.
How will I know that declaring bankruptcy is right for me?
A bankruptcy attorney can help you determine your best options. For consumers, filing for Chapter 7 relieves most of your debt, but not all. Filing Chapter 13 pays off your debts with a structured repayment plan.
What debts does bankruptcy not cover?
Bankruptcy cannot relieve you of all debts. The following will probably still be your responsibility:
- Alimony and child support
- Drunk driving judgments and personal injuries related to those accidents
- Criminal fines
- Criminal restitution
- Debts incurred by fraud or intentional wrongdoing
- Back taxes less then three years old
- Student loans
- Purchases of more than $550 for luxury goods made within 90 days of filing
Your bankruptcy lawyer can answer all your questions on the areas that bankruptcy does not address.
When does filing Chapter 7 make sense?
When the following conditions exist, filing Chapter 7 in Minneapolis may be your best bankruptcy option:
- You cannot pay your debts as they come due
- Your creditors are harassing you constantly
- You do not have any debts with co-signers
Which bankruptcy option wipes the slate clean?
Chapter 7 in Minneapolis comes closest to giving you a fresh start, although it does not discharge all your debts, and there are some that you still have to pay. With Chapter 7, an appointed trustee takes your nonexempt assets and liquidates them to partially pay your creditors.
When does filing Chapter 13 make sense?
If you need some breathing room to pay your debts, Chapter 13 in Minneapolis could be your best bankruptcy option, especially if you—
- Are behind on your mortgage payments
- Owe the IRS
- Do not qualify for Chapter 7
- Need relief from collection proceedings
- Have debts with co-signers
- Can pay your debts within three to five years
How long does a bankruptcy stay on my record?
Bankruptcies remain on credit reports between seven and ten years.
Will filing for bankruptcy end those calls from creditors?
During the time you are working out a plan, bankruptcy code dictates that your creditors must stop all collection action against you. Once the bankruptcy petition is filed into the court and you recieve a filing number you are protected.
