Using bankruptcy to permanently resolve common debts like credit cards, medical expenses, mortgages, car loans, personal loans, and even tax debts can be an effective, yet complicated process. Bankruptcy law is nuanced and shifts in the way it handles the financial situations presented in each petition on a case-by-case basis. There are two types of individual consumer bankruptcy, Chapter 7 and Chapter 13. Chapter 7 works to discharge debts in exchange for non-exempt asset liquidation. Generally, filers can protect their assets like their house, car, furniture, and appliances from liquidation with the available exemption allotments provided either under the bankruptcy code or under Minnesota state law. Chapter 13, on the other hand, reorganizes debts into a manageable repayment plan. Secured debts (vehicle loans, mortgage delinquencies) will generally be repaid under much more favorable terms that are adjusted to your monthly income and monthly reasonable and necessary living expenses. Generally, unsecured debts are only partially repaid 0-50%. The chapter 13 plan lasts three- to five-yeas. All your disposable income (monthly income not needed for your reasonable and necessary living expenses) will go towards making monthly plan payments to the chapter 13 trustee. If you’ve considered either of these bankruptcy options, Behm Law Group, Ltd. can help. With a Behm bankruptcy lawyer in St. Peter, MN and the surrounding area, you can receive guidance, support, and legal protection throughout your case.
Benefits of Having a Bankruptcy Lawyer
Not only does a bankruptcy lawyer essentially construct your petition with you, walk you through pre- and post-bankruptcy requirements, and represent you during your bankruptcy hearing, the lawyer is also there to support you even after your case has ended. If you file for Chapter 13 bankruptcy, your attorney will help you work through any changes in income or living expenses or plan adjustments throughout the three to five-year repayment period.
Chapter 7
If you file a Chapter 7 case, your attorney will help you work through any issues that might necessitate the reopening of your case. There are several reasons why a Chapter 7 case might have to be reopened even after you have received your discharge order and your case has been closed for several months or even several years.
Bankruptcy Lawyer Can Help With Harassment
- There are additional properties or assets that need to be disclosed in the bankruptcy paperwork that were not listed when the bankruptcy case was filed.
- The attorney for the filer needs to add creditors that may not have been included when the bankruptcy case was filed.
- The attorney for the filer needs to sue a creditor who may be harassing the filer and not respecting the discharge injunctive mandates of 11 U.S.C. § 524.
Some case re-openings are beneficial to the filer, such as:
- They need to add a debt they forgot to list in their petition.
- They forgot to disclose an asset that could result in the revocation of their discharge if discovered.
- They want to file a motion to avoid a judgment lien.
- They want to request the court to punish discharge violations by aggressive creditors.
- There are other mistakes they need to correct in their petition.
Other case re-openings are advantageous to your creditors or the court, including:
- Some party discovered assets that were not initially disclosed which could provide significant value for creditors.
- Creditors were prejudiced because they weren’t notified of a bankruptcy proceeding.
- Any other material or mistakes significant to your case were discovered.
If your case is reopened for any reason, the protection and assistance of a bankruptcy attorney will help you receive the most favorable outcome. To learn more about filing with a bankruptcy lawyer in St. Peter, MN, contact Behm Law Group, Ltd. today at (507) 387-7200 or stephen@mankatobankruptcy.com.
