In my last two blogs I’ve written about a common problem with chapter 13: a client’s financial situation has changed during the time the chapter 13 case is pending, and making a monthly chapter 13 payment to the trustee, which once was affordable, is no longer affordable.
In this blog, I’ll write about the options that chapter 13 debtors have when a chapter 13 case no longer “works.” I’ll write about short-term solutions first.
In many ways, federal and state laws outside bankruptcy are very pro-creditor. For example, a moneylender in Minnesota may begin the auto repossession process after just one late payment. Most creditors will try to work something out with the borrower before they resort to repossession. But, there are no guarantees. The same thing applies to late mortgage or rent payments.
In these situations, Minneapolis families basically have two options. First, they can hope that the moneylender shows some degree of patience and mercy. Second, they can take control of their finances and begin the Chapter 13 bankruptcy process in Minnesota.
Since the early 1800s, the Supreme Court has consistently held that bankruptcy is designed to give honest but unfortunate debtors a fresh start. Many notable individuals and businesses, from Henry Ford in the early 1900s to General Motors in the early 2000s, have used bankruptcy to get this fresh start. You can do the same thing.
From start to finish, the Chapter 7 bankruptcy process usually takes a little less than a year. A lot of things happen in these nine or ten months. This post highlights some of the key points.
Some clients at Kain & Scott run into problems making their chapter 13 plan payments because of a short-term, temporary financial problem. For people in a temporary bind, the difficulty in making a chapter 13 payment doesn’t have to spell doom for the chapter 13 case. Last week I wrote about fixes for short-term problems - catching up on back payments or agreeing to enter into a cure order - to catch up on chapter 13 payments and continue down the financial road to an eventual chapter 13 discharge of debt.
In many cases, a mortgage lender begins home foreclosure proceedings after just two missed payments. Sometimes the Minnesota lender is a little more patient, but that’s certainly not true in all cases.
Pre-foreclosure basically starts a financial landslide. The moneylender usually sends an acceleration notice very early in the process. Once the lender issues that notice, the bank no longer accepts partial payments. So, the homeowner goes further and further into delinquency with each passing week.
The first thing that happens when you file bankruptcy is you feel an immediate sense of relief. Why? Because as soon as you file a bankruptcy, your creditors are banned from contacting you to collect on a pre-existing debt. There is peace in the valley, your phones no longer lite up and your mail box is full of junk mail - NOT bills!
If I told you there was a way to get 100% debt relief in less than four months would you believe me? Well you should! Because at Kain & Scott our Chapter 7 Bankruptcy Lawyers help people do it everyday. Not only that we help them repair their credit - fast! Here's how...
If you were looking for an awesome heart surgeon in St Paul, you would want to find the most experienced you can find, wouldn’t you? Well, the same thing is true if you were looking for an awesome St Paul Bankruptcy Law Firm. Not only do you want one that's experienced on your side, but one that's kind, helpful and professional.
Many people believe that if you file Chapter 7 Bankruptcy you will ruin your credit forever and you can basically forget about ever getting credit again. This is complete and utter nonsense and here's two reasons why...
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