Wading into the world of bankruptcy is akin to entering a labyrinth. When you’re already struggling financially, trying to learn about a process you’ve likely only just heard about adds additional strain to the situation, and it’s easy to feel utterly lost. Chapter 13 bankruptcy was made to be a permanent solution to financial stress, not a problem. With the right support system on your side, you can utilize bankruptcy to create a new, bright financial future. Here at Behm Law Group, our lawyers can help New Ulm, MN residents build that support system and make the best possible decisions for their financial future.
Deciding Between Chapter 7 and Chapter 13 Bankruptcy.
Understanding the ins and outs of bankruptcy requires a trained guide. Beyond the legal jargon, bankruptcy lawyers can help you understand the different types of bankruptcy and how they may apply to you. Following this, a lawyer will be able to help you navigate every step of the bankruptcy process until the moment you achieve financial freedom.
For individuals filing for bankruptcy, Chapter 7 and Chapter 13 bankruptcy are the primary options. For some, Chapter 7 bankruptcy may be the ideal solution, as it allows them to eliminate debt relatively quickly; the process usually takes only 90 to 120 days. For others, Chapter 13, also known as wage-earner bankruptcy or partial payment bankruptcy, is more suitable for individuals looking for a reliable, consistent payment plan, with no interest, late fees or penalties. A Chapter 13 payment plan usually lasts 36 months.
It’s easy to think that you can just look up Chapter 7 and Chapter 13 bankruptcy and easily determine which best fits your needs. However, Chapter 7 and Chapter 13 are entirely different financial tools and each has unique intricacies that only a legal professional can discern and manage. In order to best protect your assets and create a plan that suits your financial situation, hiring an experienced and competent bankruptcy professional is paramount.
What Will Wage-Earner/Partial Payment Bankruptcy Look Like?
If you and your lawyer decide to move forward with Chapter 13 bankruptcy, you may find yourself anxious for results. The good news is that the power of wage-earner/partial payment bankruptcy lies in its consistency. You and your lawyer will create a structured payment plan that you can rely on. Your personal budget will serve as a basis for the plan and your payments will be made on a predictable and predetermined schedule. During the repayment period, creditors cannot harass you. As the name wage-earner bankruptcy implies, this option is excellent for people with stable and consistent income.
If you’re anxious about the process, your bankruptcy lawyer can help assuage your fears and help you truly understand the process. No matter which type of bankruptcy you and your lawyer decide on, the Behm Law Group can help you navigate your way through the labyrinth. For individuals in New Ulm, MN interested in Chapter 7 or Chapter 13 bankruptcy, our team is available at (507) 387-7200 or by email. Contact us today to find out more, or visit our website for additional details.
