Explore Different Types of Bankruptcy and Find Out Which One Could Lead You to Financial Independence

Worried that massive debt could change your life for the worst and force you to cope with poverty and public humiliation? If you are struggling to attain a much-needed financial balance and secure your future, you should know that you are not alone in this. Professionals from Kalenda Law Office can support your future actions and help you establish whether or not filing for bankruptcy would be an inspired decision in your particular situation.

The Key to Creating a Debt-Free Future Is in Your Hands

Kalenda Law Office representatives will enable you to gain an insight into the Minnesota bankruptcy legal framework and find the best method to protect your personal belongings, put an end to your debt-related difficulties and get one step closer to financial freedom. There are several types of bankruptcies (Chapter 7, Chapter 9, Chapter 11, Chapter 12 and Chapter 13) and not all of them are tailored to your needs, demands and expectations.

You should know that bankruptcies fall into 2 main categories: reorganization (like Chapter 13 bankruptcy, for instance) and liquidation (Chapter 7 bankruptcy). To spot the optimal one leading to financial relief and peace of mind, count on the expert guidance and personalized services brought to you by a team of experienced bankruptcy attorneys. Your quest for a bright, debt-free future starts with a phone call. Pick up the phone, call 320-255-8840 and talk to a competent bankruptcy lawyer at Kalenda Law Office.

Finding the Most Suitable Type of Bankruptcy for You, Leading to Financial Relief

To determine the type of bankruptcy that may actually work to your advantage, you should consult a bankruptcy attorney. Coping with debt doesn’t have to me a traumatizing experience. As long as you follow the advice of an expert, you can take advantage of several strategies that may involve important elements like debt consolidation or personal bankruptcy. The first option would allow you to consolidate your debt by contracting a second loan. This debt relief solution has its fair share of risks, since it compels people to list their homes as collateral. Filing for bankruptcy would be a second alternative.

Here are the types of bankruptcy that may work for you:

Chapter 7 Bankruptcy is also known as liquidation, and it represents a viable option for individuals buried in massive debts. This process involves property liquidation; in other words people are compelled to sell their goods to erase their unsecured debts. They get to keep certain items that are considered exempt (like furniture and clothes, for instance) and also preserve their pensions, cars, and homes, and they make a big first step towards a debt-free lifestyle.

Chapter 9 Bankruptcy represents a great safety net for municipalities struggling to get out of debt.

Chapter 11 Bankruptcy is mostly suitable for corporations, but in some cases can work equally well for individuals who wish to bury their debts by embracing a customized repayment plan.

Chapter 12 Bankruptcy is similar to Chapter 13 Bankruptcy and represents a valid option for most family farmers.

Chapter 13 Bankruptcy is designed to help individuals who count on a stable source of income and want to erase their debts, but can’t afford to turn their dream into reality. Chapter 13 bankruptcy gives them the chance to adopt a beneficial repayment plan and stick to it, which would enable creditors to recover their monies over a period of time ranging from 3 to 5 years. During this timeframe, creditors are not authorized to give the green light to collection actions.

Filing for bankruptcy doesn’t necessarily have to be a lengthy, costly, time-consuming process. As long as you benefit from expert guidance provided by Kalenda Law Office, you instantly minimize risks and headaches associated with bankruptcy. Give us a call today at 320-255-8840 to talk about your debt-free future.

Understanding Chapter 7 Bankruptcy

There is little that’s more stressful than having to deal with mounting bills that you simply cannot pay. Life’s ups and downs can cause many upheavals to both our personal and financial lives. If calling creditors have begun to invade every part of your day, one solution can be to apply for Chapter 7 bankruptcy.

Often referred to as a liquidation bankruptcy, Chapter 7 allows the applicant to eliminate any unsecured debts, meaning those debts not having property listed as collateral. Unsecured debts include medical bills, most credit card obligations and other debts.

What Are The Benefits Of Filing Bankruptcy Under Chapter 7?

One of the best reasons to apply for Chapter 7 bankruptcy is that it can provide instant relief from a large amount of debt. Once filed, a Chapter 7 bankruptcy prevents creditors from contacting you or engaging in any collection activity without permission from a bankruptcy judge.

Another benefit of filing is that it stops further wage garnishments from occurring, as long as the garnishments are not for alimony or child support. Filing for bankruptcy can also benefit anyone who’s driver’s license has been suspended, as long as the reason for the suspension wasn’t due to alcohol or drugs.

Qualifying for Chapter 7

Qualifying for Chapter 7 is done via something called The Means Test. The Means Test is based on the median income for your state. Those earning less per year than the median income for the size of your household will qualify to file without the need to pass The Means Test.

Bob Kalenda would like to ensure that you know about all of the benefits of bankruptcy so that you can make the best decision for you. All you have to is call Kalenda Law Office at 320.255.8840 and schedule your free consultation.

Chapter 11 Bankruptcy

The third type of bankruptcy is Chapter 11, which is often referred to as a business reorganization. A Chapter 11 bankruptcy is similar in procedure to Chapter 13, except that it is available to large businesses rather than individuals.

Chapter 12 Bankruptcy

The fourth type of bankruptcy is Chapter 12, which is often referred to as a farm reorganization. A Chapter 12 bankruptcy is exclusively available to farmers. It can result in write-downs on secured property and reductions in interest rates and cash flow needs while allowing the debtor to keep all of his property.

If you have questions regarding a certain debt, or if you are thinking about filing a bankruptcy petition, please call us at 320.255.8840.

Chapter 13 Bankruptcy

The second type of bankruptcy is Chapter 13, which is often referred to as a wage earner consumer reorganization. In a Chapter 13 case, the debtor chooses to repay all or a portion of his unsecured debt over a five-year period. The advantage of a Chapter 13 plan is that it enables the debtor to handle debts which are not dischargeable under a Chapter 7 case, such as student loans, fraud, damages resulting from driving while intoxicated, etc. Chapter 13 is preferable when the debtor has certain non-exempt property, which would otherwise have to be surrendered in a Chapter 7 case.