law offices serving both
the Brainerd Lakes
& Little Falls Area
Help Filing Bankruptcy in Brainerd, MN
Finding a bankruptcy lawyer in Brainerd, MN, can be a huge relief. The decision to declare bankruptcy is never an easy one to come to, but it’s one that carries with it several long-term advantages to your financial health. Indeed, since the beginning of the Great Recession, bankruptcies have become more common and lost a great deal of their social stigma, and that’s because they are now seen as a vital form of protection from a system that cannot always be counted on to give you a fair shake. Many of our Little Falls and Brainerd bankruptcy clients have benefitted from filing for bankruptcy, both in the short term and in the long term.
Debt’s relationship to the law goes back quite a ways. In some ways, bankruptcy laws are designed to protect people from predatory lending practices. However, the main idea behind bankruptcy laws is that no one’s life should be ruined or ruled by debt. Therefore, bankruptcy laws provide an avenue out of debt for people who might have no other way to catch up on their bills. For our clients, bankruptcy can mean a fresh start and a new beginning.
How Does Bankruptcy Work?
Many people base their ideas of how bankruptcy works off of popular culture. Indeed, many of our client initially look at Bankruptcy by its Monopoly definition: you’re broke and out of money. And that’s not always the case. In most cases, your debt simply outstrips your ability to pay back that debt. This can happen for a wide variety of reasons, many of them beyond your control. Many of our clients have to consider bankruptcy because they have had an expensive encounter with illness or because they are temporarily out of work.
In order to maximize its effectiveness, bankruptcy paperwork must be filed in a very particular manner. This means that having an attorney at your side can help save you significant money in the long run. Essentially what happens is this: you make an offer to your creditors—a sum that you are able to currently pay. Some creditors will not receive anything, others will receive a payment (sometimes in the form of returned property). This agreement will be signed off by a judge if the judge considers it fair for all parties. It’s worth noting that you may have to return some purchases, especially if they were made on a credit card, but generally your car and home will be safe from bankruptcy proceedings.
Once you, the creditors, and the judge all agree, you will have filed for bankruptcy. This will show on your credit for up to seven years, and may prevent you from borrowing money or qualifying for financing. However, in many cases, bankruptcy has a net positive impact for our clients.
What Are the Benefits of Bankruptcy?
Filing for bankruptcy can have a wide range of positive benefits for our clients, especially when those clients go through the process with our attorneys at Mallie Law Office. Those benefits may include the following:
- A cessation to harassing phone calls from creditors
- A decrease in the number of bills you have to pay each month
- A decrease in total money paid to interest
- A decrease in credit card debt
- A decrease in other forms of debt
- The ability to divert funds to something other than credit card debt (your home mortgage payment, for example)
- An “expiration date” on a bad credit report, rather than ongoing delinquent payments
Indeed, many of the bankruptcy clients that we have helped in the Brainerd and Little Falls area report that they are able to start fresh after declaring bankruptcy. With the assistance of the attorneys at Mallie Law Office, you can find the bankruptcy process that is right for you, choosing from either Chapter 7 bankruptcy or Chapter 13 bankruptcy, each of which deal with debt in slightly different ways.
It is worth noting, however, that under current federal laws, student loan debt cannot be discharged or forgiven through a bankruptcy process. However, if you are having difficulty paying your student loans because of an excess of other types of debt, filing for bankruptcy can still help put you on more secure financial footing. If you’re looking for a Brainerd bankruptcy lawyer, contact us right away!
Is Bankruptcy Right for Me?
The only way to know if bankruptcy is truly a good option for your situation is to come talk to the attorneys at Mallie Law Office. We treat all of our clients with a high degree of dignity and respect. We know that everyone goes through financial hardships, and we look at bankruptcy as a way to help give you that fresh start.
If you want your fresh start, contact Mallie Law Office to schedule a consultation.