If you are overwhelmed by debt and are ready to put an end to the collection calls, filing for bankruptcy might be in your best interest. The moment you file, you could halt all collection efforts against you. Saint Cloud residents take advantage of the protection of the bankruptcy code each year, and so should you.
A St. Cloud commercial law lawyer from the team of Bogin, Munns & Munns serving St. Cloud can advise you through every step of your own bankruptcy case. We can help you avoid any delays or mistakes that could jeopardize your discharge, ensuring a smooth filing and the best possible outcome for you.
Our firm uses our founding principles of respect, dignity, and fairness with every client we serve. An attorney from our team specializing in bankruptcy cases will prioritize your needs and offer you the personalized service you deserve.
The Benefits of Filing for Bankruptcy in St. Cloud
There are many benefits of filing for bankruptcy protection. Many of the essential benefits of filing for bankruptcy take effect the moment you file your petition. Some of these benefits include:
- The automatic stay. When you file for bankruptcy, immediate help will arrive as the automatic bankruptcy stay. The automatic stay bars your creditors from attempting any collection efforts. You can expect a pause on lawsuit proceedings, collection calls, or wage garnishments.
- Halting legal proceedings. The automatic stay can also halt legal proceedings against you. For example, a lawsuit that has not yet been resolved will be put on hold during your bankruptcy case. Importantly, you can also stop repossessions, foreclosures, and evictions.
- Improved credit score. It might not happen immediately, but a bankruptcy discharge could improve your credit score. This improvement could come quicker than you think for some people already dealing with low credit scores.
- Firm financial footing. Many people can walk away from a bankruptcy case on solid financial ground. Not only are many of their previous debts dealt with, but they could also keep up with their expenses moving forward.
These are only a few benefits that can follow a successful bankruptcy case. To learn more about the value of discharging your debts, you can discuss your case with a bankruptcy lawyer on our team.
To consult with an experienced bankruptcy lawyer serving St. Cloud
855-780-9986
Types of Bankruptcy Cases an Attorney Handles
Not every bankruptcy filing is the same. While there are multiple chapters within the bankruptcy code, two apply most often to individual consumers. While these two types of bankruptcies have some similarities, they also have some crucial differences.
The two common forms of bankruptcy are Chapter 7 and Chapter 13.
Chapter 7
Informally, Chapter 7 bankruptcy is referred to as liquidation bankruptcy. This is because the trustee overseeing the case could liquidate some of your assets during bankruptcy.
Despite the risk of having your assets liquidated, Chapter 7 is beneficial for most filers. Benefits include:
- It is the quickest form of available bankruptcy, rarely taking longer than one year to complete. At the close of the case, debtors typically see the vast majority of their debts wiped out thanks to a bankruptcy discharge.
- For many people, filing for protection under Chapter 7 of the Bankruptcy Code does not require liquidating all assets. Many filers lack the assets needed to pay off creditors. Even if you have assets, many helpful exemptions may be available. For instance, in Florida, you may be able to exempt your home, according to Florida Statutes §222.01.
Chapter 7 bankruptcy is designed to give individuals a fresh start by wiping out their debts. However, not everyone can qualify for Chapter 7 bankruptcy due to a critical eligibility criterion known as the “means test.”
The means test was introduced as part of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA). Its primary purpose is to prevent abuse of the bankruptcy system by ensuring that only individuals who genuinely lack the means to repay their debts can file for Chapter 7 bankruptcy.
The means test compares the debtor’s income to the median income of households of similar size in their state. If the debtor’s income is below the state median, they automatically qualify for Chapter 7. However, if their income is above the median, they must undergo a more detailed calculation to determine their disposable income.
Failing the means test means that the debtor is presumed to have enough financial means to repay some of their debts and is not eligible for Chapter 7 bankruptcy. Instead, they may be directed to file for Chapter 13 bankruptcy.
Your St. Cloud bankruptcy lawyer will determine if you are eligible to file for Chapter 7 bankruptcy. If you are not eligible, they will file for Chapter 13 instead. Contact our team today to find out more.
Chapter 13
Obtaining a bankruptcy discharge under Chapter 13 typically takes much longer than under Chapter 7. Chapter 13 is often referred to as reorganization bankruptcy. The process is not about liquidating but reorganizing your financial obligations to allow you to meet them in the future.
That does not mean that a discharge is not available. Many of the same debts that are dischargeable under Chapter 7 and are also available under Chapter 13. However, the process could take as long as several years to complete.
With a Chapter 13 bankruptcy:
- You are required to develop a plan that the court must approve. The plan will outline your secured and unsecured debts and what you will pay toward those debts each month.
- You must make these monthly payments to the bankruptcy trustee. The trustee will distribute the payments to each creditor, which may cover a portion of your old debt and your new obligations.
- The goal of Chapter 13 is to allow you to get caught up on paying debts, like your mortgage.
A bankruptcy lawyer in St. Cloud from our team can analyze your situation and help you determine which option would best fit your needs.
Discuss Your Options During a Consultation with a St. Cloud Bankruptcy Attorney Today
It is understandable if you are hesitant to pursue a bankruptcy claim. After all, the short-term challenges that can come with bankruptcy can be disruptive. However, the bright side is that these cases can dramatically improve your financial footing for the rest of your life.
If you have questions about whether bankruptcy is right for you, a St. Cloud bankruptcy lawyer from Bogin, Munns & Munns is here to help. To learn more about how bankruptcy could work in your favor, contact us today for a consultation.
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