Handling financial troubles alone is trying, but when you fall into a situation where filing for bankruptcy would be your best option, the process can often seem inescapably daunting. For an individual filer, Chapter 7 bankruptcy is the most common and generally the best option for relieving debt. Behm Law Group, Ltd. can help you use your options to the greatest outcome when filing for bankruptcy in Redwood Falls, MN.
The U.S. Bankruptcy Courts understand that individual filers may need options beyond the standard Chapter 7 process, and thus there are bankruptcy mechanisms that allow for collaboration between debtors in similar financial situations.
Joint Administration, for example, is a method of processing two or more bankruptcy cases in U.S. Bankruptcy Courts in unison. The separate cases are combined into one and administered as such, meaning the collaborating debtors can join their resources, assets, and debts into one case representing the debtors as one party in the court. Cooperating debtors can also join together in hiring attorneys and credit counselors.
Substantive Consolidation goes hand-in-hand with Joint Administrations and defines the act of repaying all involved creditors with the combined assets of all involved debtors. Pooling assets alleviates the burden of liquidation that would be placed on a single creditor, but it must also result in equal benefits to all creditors.
Joint Petition allows spouses to file for bankruptcy in the state of Minnesota under the same petition. This means that all debts and assets are consolidated to represent the spouses as a single entity. Joint petitions are similar to Joint Administration proceedings, but they’re more beneficial for spouses because all asset liquidation and debt discharges are contained within the single household.
The collaborative possibilities that individual filers have when considering Chapter 7 bankruptcy may help them in the long run after debts are discharged and assets are liquidated. If you feel any of these options are right for your financial situation, contact Behm Law Group, Ltd. at (507) 387-7200 for more information about filing for bankruptcy in Redwood Falls, MN.