If you’re struggling with debt, you’re not alone. Many people you may see every day at work, on the street, or within your circle of friends may be working through financial difficulties just like you. Unfortunately, there’s so much social stigma around debt that many of us may feel shame and a need to hide our debts. While it’s true this may protect you from the judgment of others, it may also prevent you from facing your debts as a real issue. If debt is negatively affecting your life, you can benefit from taking direct action to resolve those financial problems. With the help of Behm Law Group, Ltd., you can achieve debt relief by filing for bankruptcy in Luverne, MN.
Because of the negative images the word debt brings to mind, it’s not unexpected that bankruptcy also receives its own kinds of undesirable judgment. Whatever images bankruptcy has socially, in reality it’s a highly effective way to recover from debt with what is essentially a government blessing. If you’re struggling with some of the most common debts in the U.S. (i.e. credit card debts, medical bills, mortgages, and car loans), you can benefit from filing for bankruptcy.
While bankruptcy is often a remedy for debts, it comes with its own negative effects like many other legal processes. The pros often outweigh the cons, but occasionally, bankruptcy might not be right for you. Understanding the full weight of what bankruptcy means is important for anyone who is struggling with debt.
Pros
- You receive an automatic stay that prevents your creditors from collecting debts as soon as you file for bankruptcy.
- Your unsecured debts will be discharged in full in a Chapter 7 bankruptcy, and discharged 0-100% in a Chapter 13 reorganization bankruptcy.
- Your secured debts will be discharged in a Chapter 7 bankruptcy, and sometimes you’ll be able to keep the properties serving as collateral for those debts by engaging in post-bankruptcy agreements with the creditors that have more favorable terms.
- Your secured debts will be reorganized into a Chapter 13 repayment plan that fits your budget and limits the repayment period to three to five years.
- Overall, you receive debt forgiveness and are offered a way to work through debt issues with court administered remedies.
Cons
- Your credit will drop, and a bankruptcy remains on your public record for up to five years.
- Some debts are more difficult to discharge during the bankruptcy process, including two of the most common debts in America: student loans and tax debts. These debts are not discharged after the ordinary bankruptcy process has concluded. In order to try and get such debts discharged, one must commence an adversary proceeding and sue the creditors and such proceedings can be both expensive and protracted.
- You will have to pay a bankruptcy filing fee to the bankruptcy court, and to truly file a successful case, you will have to pay attorney’s fees to a bankruptcy attorney.
Though there can be downsides to filing for bankruptcy, many who file experience positive benefits that far outweigh the negatives. If you’re considering filing for bankruptcy in Luverne, MN, contact Behm Law Group, Ltd. today for more information about how it will affect you as an individual or business.
