When deciding whether to file for bankruptcy, most people are very concerned about what their creditors can do to them.
Debtors want to avoid wage garnishments, bank account levies, and foreclosures, so they live in fear of their creditors.
What most people don’t realize is that this balance of power changes the minute the debtor seriously starts to think about filing for bankruptcy.
You can have power over your creditors.
WHY IS FILING FOR BANKRUPTCY SO POWERFUL?
There are many reasons, but two of the most important are:
- When you file for Chapter 13 Bankruptcy or Chapter 13 Bankruptcy, many creditors are entitled to nothing, whether they agree to it or not
- Other creditors can have their loans modified and reduced by the courts
Why does it work so well?
- Maybe you have talked to a collection company, and offered to pay them $50 a month until the debt is paid, but they refuse anything less than $500
- Maybe you have talked to your mortgage lender, and they have been losing your loan modification paperwork, or won’t lower your rate
When you tell these people that you might have to file for bankruptcy, then suddenly the tables turn and you have the power.
What happens when you file for bankruptcy
If you file for bankruptcy then:
- The collection company gets nothing, so suddenly that $50 a month looks pretty good.
- You can also strip down and discharge some mortgages, and pay the arrearage over time, so the mortgage lender loses power also
What is more, these effects happen whether the creditors want them or not.
They have no more say in the matter, and suddenly you have power over your creditors
The second your bankruptcy is filed, the creditors lose the right to collect from you and must negotiate with your attorney.
If you hire a good Minnesota bankruptcy attorney he or she will know the laws and make sure that you, not the creditors, get the best deal.
WHAT TO DO NEXT
If you’re strugglign financially, and think that for Chapter 7 Bankruptcy or Chapter 13 Bankruptcy in Minnesota could be the answer, then why not not speak to us now at 612.824.4357?
We’ll give you all the help and advice you need.
We’re looking forward to helping you.
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