The three types of bankruptcy that people can file for are Chapter 7, Chapter 12, and Chapter 13. A Minnesota personal bankruptcy attorney can evaluate your financial situation and advise you which type of bankruptcy best fits your circumstances.
Chapter 7 bankruptcy
Chapter 7 bankruptcy is sometimes referred to as liquidation bankruptcy. However, it isn’t as scary as it sounds. Chapter 7 is a good option for people who rent, have little or no equity in their homes, or have few possessions. When you file Chapter 7 bankruptcy, most of your unsecured debts can be discharged. If you have qualified under the means test and have completed a pre-filing education session with a credit counselor, you can file for Chapter 7 bankruptcy.
Chapter 12 bankruptcy
Chapter 12 is for family farmers who are financially distressed. To qualify, the family farmer must have a regular annual income more than 50% of which must be from farming activities. If you file for Chapter 12 bankruptcy, you have 3 to 5 years to make payments to your creditors.
Chapter 13 bankruptcy
Chapter 13 bankruptcy is a good option for home owners with steady incomes and equity in their home. When you file Chapter 13 bankruptcy, you will have 3 to 5 years to make payments on your delinquent accounts. If your unsecured debts are less than $360,475 and your secured debts are less than $1,081,400, you can file for Chapter 13 bankruptcy.
No substitute for a bankruptcy law
You need a qualified Minnesota bankruptcy attorney to help you choose among Chapter 7, Chapter 12, or Chapter 13 bankruptcy. At Behm Law Group LTD, we limit our practice to bankruptcy law. Our bankruptcy lawyers have helped scores of people in your position. Whether you file for Chapter 7, Chapter 12, or Chapter 13, we will work to get you the freedom you deserve.