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A bankruptcy petition activates powerful protections for people facing financial hardship. Click below to learn how to stop debt collectors in their tracks.
When you petition for bankruptcy, the law leaps into action. Almost immediately, creditors stop calling. Foreclosure and repossession efforts cease. Judgments can’t be entered. Wage garnishments, bank levies and power shutoffs all come to a halt.
Bankruptcy provides more than immediate relief, however. By freeing you from unmanageable debt, it gives you the opportunity to regain control of your finances and move on with your life. Moreover, filing for bankruptcy doesn’t need to be complicated. At Prescott, it begins with a simple, free conversation about your situation. We’ll discuss your best options and create a plan to fix this problem. Then we’ll secure all the protections you’re entitled to under the law.
Chapter 7 Most people who would have been eligible for Chapter 7 bankruptcy relief under the old laws (before October of 2005) will still qualify today.
For more than 40 years, we have stayed on top of bankruptcy trends, changes in the law, and the fluctuating needs of individuals. Our knowledge and experience enable us to determine what type of bankruptcy would be appropriate for you.
If you’re like most of our clients, you have two principal options for declaring bankruptcy.
CHAPTER 7 BANKRUPTCY. If you haven’t filed a Chapter 7 within the last eight years, can pass the Chapter 7 “means test,” and your budget only allows for you to pay your monthly living expenses, you may be able to discharge most of your unsecured debt, including credit card bills, hospital bills and older tax debts. Filing for Chapter 7 bankruptcy protection can also put an immediate stop to creditor harassment and wage garnishments – and put at least a temporary stop to home foreclosure proceedings or car repossession. It is available both to individuals and businesses.
CHAPTER 13 BANKRUPTCY. This type of bankruptcy allows you to reorganize your finances while protecting you from creditor harassment, wage garnishment and other negative actions. It comes in the form of a debt repayment plan, which can be three-to-five years in length. The plan enables you to pay off debts and repay past-due mortgage payments and car loans even if you are delinquent on payments. Chapter 13 bankruptcy is only available to individuals.
Attempting a bankruptcy filing on your own is a risk we do not believe you want to take. Bankruptcy laws are complex and if you do not understand them, it could cost you. Past clients of Prescott Pearson & Tande, PA, will readily tell you: When it comes to debt relief, you need a lawyer who knows bankruptcy, knows Minnesota and knows each client’s individual needs.
Chapter 13 If you file under Chapter 13, your creditors will not be able to go after your co-debtors or co-signers for money that you owe.