Minneapolis and Saint Paul Chapter 7 Bankruptcy Attorneys
Most of my clients know that they need to do something to get out of debt and work on fixing their credit, but the problem is that bankruptcy costs money up front. What is a person to do if they are already living paycheck to paycheck?. What you should know is if you are considering filing for bankruptcy, the cost is well worth it when you consider the return on investment (ROI). For the relatively small cost of the attorney’s fees, people become tens of thousands of dollars richer by not having to pay 25% interest on tens of thousands of dollars of debt for the next 5-15 years.
Walker & Walker also has lots of ways to work with people on getting the fees from creditors, or filing with $0 attorney’s fees down, and then setting up a payment plan. We specialize in finding mistakes made by big companies and collection agencies that allow us to get the attorney’s fees later and file your case right away.
Short-Term Benefits of Chapter 7
The biggest benefit of chapter 7 is that it means that you can stop your debt payments for credit cards, medical bills, repossessions, business debt, and collections right away. You just don’t owe them anymore. Think about how much better your budget would be if you were able to stop paying $500 to $1200 in monthly minimum payments on your credit card.
One of the other immediate benefits of a Chapter 7 bankruptcy filing is that you will stop getting calls from creditors attempting to collect the debt you owe.
This is known as a “stay” and goes into effect immediately upon your filing. In most cases, any wage garnishments and any pending repossessions will also stop meaning you could start getting additional income immediately. It is important to note this may not apply if the wage garnishment is pertaining to back child support payments.
Long-Term Benefits of Chapter 7
Typically, a Chapter 7 filing means within six months (or less) your unsecured debt will be eliminated completely, and improve your credit score. It is important you understand the difference between secured and unsecured debt. Car loans, mortgage loans and home equity loans are secured by the underlying property. This means that you get the option of continuing to pay the mortgage or vehicle loan and keeping the collateral, or discharging the debt and giving back the collateral in 3-9 months after the chapter 7 is filed. Chapter 7 is a great way to get out of a bad deal on a car loan.
Credit card debt, revolving lines of credit, and medical debt are unsecured debt. Creditors are invited to attend a meeting once you have filed bankruptcy but unless you have committed fraud chances are, they have no option but to accept the fact the balance of their accounts will remain unpaid.
Breaking Chapter 7 Myths
Many debtors avoid filing Chapter 7 because they believe some of the myths about such a filing. Creditors must not pursue collection of a debt after your Chapter 7 is discharged. If the debt has been sold to a collection agency, the collection agency cannot collect on the debt. Once your bankruptcy discharge is completed, you do not owe the debt any longer.
Many debtors are concerned about losing their home, automobile, or even their jobs. First, nearly all Minnesota residents can keep their homes and cars after filing bankruptcy. Debtors cannot be fired for filing bankruptcy though it may have an impact on security clearances.
Firing an employee because they have filed bankruptcy is considered discriminatory behavior. There are several advantages and disadvantages of filing Chapter 7 bankruptcy.
Rebuilding Credit After Chapter 7
One of the many myths surrounding a bankruptcy is it is impossible to rebuild your credit for several years after a Chapter 7 filing. This is false since many credit card companies will offer new credit cards to someone before the bankruptcy is discharged.
Remember, most people file bankruptcy after a life event such as an illness, job loss, or divorce. Once you have filed and had a Chapter 7 bankruptcy discharged, you cannot repeat the process before eight years have passed. Credit card companies are aware of this and they are also aware that the majority of people only ever file bankruptcy one time in their lives. Therefore, the assumption is made that once someone has a clean slate after a discharge, chances are they are going to pay any new debt in a timely manner.
Bankruptcy Fees and Return on Investment
If you could invest $5,000 in the stock market and guaranteed that six months later, you would have $20,000 would you take it?
Of course you would, you would be silly not to. Filing bankruptcy with Walker & Walker can usually be done for less than $2,000, including court fees, and usually makes people $20,000 to $50,000 better off with the stroke of a pan.
Bankruptcy is similar in nature to an investment gain when you think about it: You invest money today to walk away from all of your unsecured debt and it is like having money put in your pocket.
Just imagine having no more credit card payments or medical bill payments which need to be paid from your weekly paycheck. The immediate return is you have more money in your pocket and you have an opportunity to start over with a clean slate. This means you will see immediate benefits of filing bankruptcy, benefits that grow over time.
Contact Walker & Walker Law Offices, PLLC
We are here to help you get a fresh start and rebuild your credit. Our phones are answered by live knowledgeable people, and if you get us after hours, we will call you back the next day.
Evening, weekend, and phone conferences available. We return emails and form submissions immediately during business hours.