St. Paul Bankruptcy Lawyer

If you are considering bankruptcy, it can be hard to determine which debt relief strategy would work best for your situation. A St. Paul bankruptcy lawyer at Walker & Walker Law Offices could help you navigate the process.

Our knowledgeable bankruptcy attorneys may explain your debt relief options, empowering you to build a secure financial future. Contact us today to learn more about bankruptcy and take the first step toward debt management.

When To File for Bankruptcy and Why

Bankruptcy is a legal process for discharging or reducing debts. It offers payment flexibility and balance reduction for individuals who cannot meet their payment obligations. 

Whether or not bankruptcy is appropriate for your situation depends on the types of debts you have and your financial situation. Some debts, such as credit cards, personal loans, and medical bills, may be dischargeable. However, debts such as student loans and child support may not be. Additionally, an automatic stay could provide more immediate relief by stopping collection attempts, such as foreclosure or repossession, giving you time to improve your financial situation.

There are two common bankruptcy chapters that individuals can file, and which one is best for you depends on whether you have a steady income and how much income you earn. Restructuring your debt under Chapter 13 may be an option if you have a steady income. However, liquidation under Chapter 7 might be better if your income falls under a certain threshold. A St. Paul attorney could explain how the different bankruptcy chapters apply to your situation.

What Is the Difference Between Chapters 7 and 13?

Chapters 7 and 13 are the two most common types of personal bankruptcies. Both chapters allow debtors to discharge certain debts, although the process by which those debts are discharged is different. 

Chapter 7 bankruptcy allows for the immediate discharge of certain debts. However, debtors must meet income limits and may need to liquidate assets to pay creditors. In Minnesota, debtors may choose between state and federal exemptions when filing for bankruptcy. These exemptions allow you to protect certain assets, such as your primary residence, from liquidation. Your bankruptcy attorney could help you determine which exemption would benefit your financial situation in St. Paul.

A Chapter 13 bankruptcy works by restructuring payments, and after the completion of a three-to-five-year payment plan, a bankruptcy judge discharges the debts. Debtors should have regular, disposable income. In addition, there are limits on the amount of secured and unsecured debts eligible for Chapter 13. 

How Could a Bankruptcy Attorney Help?

One of our debt relief lawyers in St. Paul could review your situation, explain your options, and help you make an informed choice. When you work with us, we file the bankruptcy petition and supporting paperwork and represent you during proceedings. We also work closely with the bankruptcy trustee to create a repayment plan.

We understand there are several relief options for those struggling with debt payments. Our team helps you determine which debt relief options you qualify for, understand the steps to file for bankruptcy, and get your debts discharged.

While bankruptcy can help, it can also reflect negatively on your credit. An experienced attorney may help you understand the impact on your financial situation and how you could rebuild your credit for a more secure future. 

Call for a Free Consultation Today With a Bankruptcy Attorney in St. Paul

If you are considering bankruptcy, a St. Paul bankruptcy lawyer at Walker & Walker Law Offices could provide dedicated support throughout each step of the filing process. We give personal attention to your situation from the beginning and create a strategy to help you move toward financial recovery. Contact us today to book your consultation.