Navigating the bankruptcy process can feel daunting, but with the right guidance, you can approach it with confidence and clarity. At Walker & Walker, we aim to provide you with a clear understanding of each step involved, ensuring you feel informed and reassured throughout the journey.
INITIAL CONSULTATION
Your bankruptcy journey begins with a free consultation with one of our experienced Minnesota bankruptcy attorneys. During this meeting, we’ll discuss your financial situation, your goals, and whether Chapter 7 or Chapter 13 bankruptcy is the best option for you. Our aim is to provide you with a comprehensive understanding of your options, allowing you to make an informed decision.
PREPARING YOUR PETITION
Once you’ve decided to proceed, the next step is to prepare your bankruptcy petition. This involves gathering and organizing all necessary financial documents, including income statements, tax returns, and a list of your debts and assets. Our team will work closely with you to ensure that your petition is accurate and complete, minimizing any potential delays.
FILING THE PETITION
After your petition is prepared, we’ll file it with the bankruptcy court. This filing triggers an automatic stay, which immediately stops most creditors from pursuing collection actions against you. This includes halting wage garnishments, foreclosures, and harassing phone calls, providing you with immediate relief.
MEETING OF CREDITORS
Approximately 20 to 40 days after filing, you’ll attend a meeting of creditors, also known as a 341 meeting. During this meeting, the bankruptcy trustee and any creditors who choose to attend will ask you questions about your financial situation and the information in your petition. One of our attorneys will be with you to provide support and ensure the process goes smoothly.
DEVELOPING A REPAYMENT PLAN (CHAPTER 13)
If you’ve filed for Chapter 13 bankruptcy, the next step involves developing a repayment plan. This plan outlines how you’ll repay your debts over a period of three to five years. Our team will help you create a feasible plan that fits your budget while satisfying the requirements of the bankruptcy court.
COURT APPROVAL
For Chapter 13 cases, your repayment plan must be approved by the bankruptcy court. This involves a confirmation hearing where the judge will review your plan and any objections from creditors. Our attorneys will advocate on your behalf to secure court approval of your plan.
COMPLETING THE PLAN (CHAPTER 13) OR LIQUIDATION (CHAPTER 7)
In Chapter 13, you’ll make regular payments according to your court-approved plan. As long as you adhere to the plan’s terms, you’ll be protected from further collection actions. In Chapter 7, the trustee will oversee the liquidation of your non-exempt assets to pay off creditors. However, many Chapter 7 filers are able to keep most, if not all, of their property due to exemptions.
DISCHARGE OF DEBTS
The final step in the bankruptcy process is the discharge of your debts. For Chapter 7, this typically occurs about four months after filing. For Chapter 13, it happens after you’ve completed your repayment plan. The discharge releases you from personal liability for most of your debts, giving you a fresh financial start.
LIFE AFTER BANKRUPTCY
Life after bankruptcy can be a time of renewal and rebuilding. It’s important to create a budget, rebuild your credit, and adopt healthy financial habits. Our team is here to provide ongoing support and guidance as you transition into this new chapter of your financial life.
The bankruptcy process, while complex, can be a powerful tool for regaining financial stability. At our Minnesota bankruptcy law firm, we’re committed to walking with you every step of the way. If you’re considering bankruptcy or want to learn more about what to expect, contact us at 612.824.4357 or visit one of our offices in Minneapolis, St. Paul, Blaine, or Brooklyn Park. We offer free consultations to help you explore your options and make informed decisions.
Take control of your financial future today.
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