A Minneapolis bankruptcy attorney may be able to help you if you have borrowed more than you are able to pay back.
Retaining a Minneapolis bankruptcy attorney is not something one looks forward to doing. In fact, no child dreams of growing up and filing for bankruptcy - even if the U.S. Congress, who has passed tighter bankruptcy laws, seems to believe that. With the proliferation of easy access credit cards and very high interest rates, many more people are calling to consult with a Minneapolis bankruptcy attorney.
A sponsoring Minneapolis bankruptcy attorney of Total Bankruptcy understands that, in today's economy, a job loss or unexpected illness might suddenly make it very difficult to even make the minimum payments on monthly bills. Once you miss a few payments, the penalties and interest start to accrue, raising your debt even more.
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Banks and credit-card companies are now required to increase the minimum monthly payments owed by consumers to cover all fees and interest as well as some of the principal. The idea behind this approach is intended to help people pay bills faster and slash the interest due, but unfortunately many people simply cannot afford an increased amount. These rules combined with higher energy prices and rising mortgage debt is increasing the overall household debt load and pushing many families to the financial brink. On a national level, household debt has now reached $10 trillion, or 87% of gross domestic product!
Only one viable choice!
When faced with additional, unforeseen expenses such as uninsured medical bills, many families have no other choice but to call a sponsoring Minneapolis bankruptcy attorney to file their case in the courts. By filing a Chapter 13, a sponsoring bankruptcy attorney may be able to set up a sensible repayment plan between you and your creditors. Your creditors may agree to forgive a portion of your debts to them in exchange for your commitment to repay your reduced debts over time. Most plans require you to make monthly payments to the trustee - a federal official who is appointed by the court to oversee your case - who in turn makes distributions to your creditors.
Typically, repayment plans last from three to five years. While you are making payments under a repayment plan, your creditors cannot take any collection actions against you, and they are required by law to abide by the terms of your repayment plan.
To qualify for a Chapter 13 petition, you must satisfy three requirements:
1) You must have a regular source of income to meet the terms of your repayment plan.
2) You must have enough disposable income -- money left over after your expenses to allow you to make your monthly payments in a timely fashion.
3) Your debts must not be too high. If your secured debts exceed $922,975, you are not eligible for a Chapter 13.
If you have any questions, call toll free!
Call us, toll free, at 1 (877) 349-1309. Or, use our online case evaluation form. Simply fill out this secure online form with a few details about your situation. All information is kept strictly confidential. One of our experienced lawyers should contact you to schedule a free, no-obligation consultation.
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The purpose of this web site is to help you learn everything you need to know about bankruptcy, the process, your bankruptcy attorney and your legal rights. The best place to start is with the U.S. Bankruptcy Code. It delivers protection to people in financial jeopardy who are suffering under mountains of debt. Bankruptcy is your legal right.