Filing for Bankruptcy in Minnesota
Chapters 7, 11 and 13
- Chapter 7 is the most severe and can be used by all individuals and businesses. All unsecured debts are terminated, and are paid if any money remains after secured creditors are paid and after various exemptions permitted by law are claimed by debtors.
- Chapter 13 delays and reduces the amount of payments to creditors over a period of time and is typically used by wage earners and small businesses. This is known as a Chapter 13 Plan, or an individual reorganization. Chapter 11 is used by larger businesses, and resembles a Chapter 13, with many more requirements. If all a debtor needs is a plan to pay off debts, then a Chapter 13 or Chapter 11 is preferable, rather than a Chapter 7, particularly when trying to re-establish their credit worthiness.
Bankruptcy is a legal proceeding in which people with financial problems can get a fresh start. In most cases, filing for bankruptcy immediately stops all of your creditors from seeking to collect money or take property from you until your debts are discharged or arranged according to the law.
The choice to declare bankruptcy can be caused by strenuous personal and professional challenges and is one of the most stressful decisions a person will ever face. Your choice will not only affect you, but your family as well. Lauri Schmid is a Minnesota Bankruptcy attorney who is here to see you diligently through this process.
For a free consultation, contact us today.
Dougherty, Molenda, Solfest, Hills & Bauer P.A. is a debt relief agency. We help people file for bankruptcy relief.