HOW TO PAY FOR BANKRUPTCY

One of the most common questions about bankruptcy is:  How do I pay for my lawyer?

Chapter 7 bankruptcy allows a person to eliminate most types of debts completely, while allowing a person to keep all assets that are exempt from creditors.   The court filing fee and attorney’s fee for Chapter 7 bankruptcy must be paid in advance.  If a person wants Chapter 7 bankruptcy and is not in a big hurry to file, in many cases it makes sense for them to stop making payments on their debts and use the savings to make monthly payments toward the attorney’s fee.  I can accept monthly payments and file the case when all of the fees are paid.  Sometimes a family member gives my clients a gift or a loan of the funds.  Sometimes my clients have enough in savings to cover the fee or they are able to borrow the funds from their 401k plan.

Sometimes, the funds cannot be borrowed from a family member, the person’s wages may be subject to garnishment or their money in the bank has been seized by creditors.    Should they need to file bankruptcy right away, they might consider a Chapter 13 case.  Chapter 13 allows a person to consolidate their debt and pay a fraction of the debt in monthly payments over three to five years.  The debt is not normally required to be paid in full, but only whatever is affordable in the person’s budget. For Chapter 13, I need the court filing fee paid in advance, but most or all of the attorney’s fee can be consolidated with the other debts and does not have to be paid in advance.  Chapter 13 can be a good way to get immediate protection from the bankruptcy court, even if you don’t have the funds for attorney’s fees up front.

How To Handle Enormous Debt Load Right After Receiving Your College Degree.

More than ever, young adults are being saddled with an enormous amount of debt right after they earn their college degree. They spend the rest of their twenties giving a sizable portion back to the University who just won a bowl game and is hardly hurting for cash. Meanwhile, you're a twenty something lawyer who passed the Bar exam, works for a prestigious firm, yet you eat Ramen and take the bus and duck your landlord at the end of the month. That's no way to enter the workforce--straddled with debt.


More young adults are filing for bankruptcy than ever. There is a stigma and almost a shame that comes with it, but there needn't be. Think of bankruptcy less a retreat and more a reset. Yes, it will reflect on your credit report and yes it will complicate your financial future at least for the next seven years. "So why would I want that?" You ask...
Here's the alternative. Continue on eking it out. Giving most of your pay to your wealthy college who's degree you might not even be using! Take the bus. Go broke trying to impress clients by paying for your meals only to find your wages have been garnished and your card doesn't work.
You can expect that for much longer than seven years if you don't file for bankruptcy. You don't want to have to play that game where you act like: "it's the banks fault" in front of potential clients. You know good and well there was a fifty-fifty chance your card would work, which is why you only ordered salad and water. You cringed when the potential clients ordered swordfish and champagne. And then came the coup de grâce? Potential client #1 liked the swordfish so much he wants a second to go. For his dog! Your mental cash register just exploded. You know what's coming. Epic embarrassment. You see it on the waiter as his or her demeanor has now changed. They have your card in their hand and a single, short, stubby receipt. We all know what that is. The rejection letter of debit machines. Just like when you got into college. Thin envelope meant: "Sorry! Try again!". Thick envelope meant :"Pack your bags".
Don't get another thin envelope or short receipt. Get your affairs in order. What you handle today will greatly behoove you tomorrow. We will get creditors off your back and allow you to entertain those potential clients without fear of embarrassment.

Can I File For Bankruptcy More Than Once?

Did you know that you can file bankruptcy more than once? Sometimes, we find ourselves in the hole again through circumstances beyond our control. There are options if you should find yourself in need of debt relief.




There are two common types of bankruptcy, Chapter 7 and Chapter 13. You are able to file more than once under each type of bankruptcy, however federal laws set into place in 2005 have made it more difficult. While there is no limit to how often you can refile, filing too closely together can be a waste of time if you would like your debt discharged.






If you initially filed for Chapter 7 bankruptcy (which eliminates most debt) in 2005 you will be eligible to file Chapter 7 again in 2013. Part of the criteria is that you wait at least 8 years between filing. However, if your second filing is for Chapter 13 (which restructures debt), you only have to wait 4 years rather than 8. The time periods between filings are measured from filing date to filing date and not the date your debt was discharged.

Understanding The Benefits Of Bankruptcy.

Many people are afraid of bankruptcy. The very word sends shivers down their spine. It’s the financial world’s scarlet “a”. That’s a general misconception held by many. Filing for bankruptcy is often times a beneficial experience when one is saddled with insurmountable death. People worry about it showing up on their credit report--and it will, but it is still better than nothing. Bankruptcy, with all of it’s taboo, is in fact doing something.




Having good credit after bankruptcy is possible, you could even obtain a good credit score within several years of your bankruptcy case being discharged. The first step is receiving the notification from the courts that all of your debt has been discharged. This form will be titled “Discharge of Debtor.” Keep this form in a safe place because you may need to show this to creditors as proof your debts are gone.




Review your credit reports and score closely and clear up any errors. Request your credit report from each of the three major credit agencies. Make sure that all of your debts are listed as “discharged.” and contact your Bankruptcy Attorney Gregory J. Wald.










Gregory J. Wald, Attorney at Law

1500 Northland Plaza

3800 American Boulevard West

Bloomington, MN 55431

Telephone: 952-921-5802

Toll Free: 1-866-747-1130

Fax: 952-831-1346

BankruptcyMinn.com



Gwald314@msn.com

The Problems That Occur When Filing Bankruptcy Without An Attorney

WHAT HAPPENS AFTER I FILE FOR BANKRUPTCY?

Filing for bankruptcy can be a daunting and emotionally draining experience. Going it alone will only make the task even more monumental. It doesn't have to be so bleak though. Sometimes in life we need a reboot, if you will. Many of great financiers, moguls, and millionaires alike have filed for bankruptcy. As well have average salary earners, college students, contract holders et al. The point is, at one time or another many of us have been "in over our heads".

Once you file the petition there are a number of documents you must submit to the court and your Trustee within specific time frames. Failure to comply may cause your case to be dismissed. Unfortunately, if you file without an attorney, there is no one who will tell you what has to be filed and when. Which is why whenever dealing with anything above parking ticket a lawyer is your best course of action.

The Bankruptcy Court sends out a notice of your bankruptcy filing to all of the creditors listed in your schedules. This notice advises the creditors that you have filed for protection, which chapter you filed and advises them that an "automatic stay" is in effect, preventing creditors from pursuing any further efforts to collect the debt. This would include staying a foreclosure sale, wage garnishment, and even a civil court proceeding or trial. Criminal cases are not stayed, nor are child support hearings.

For more information regarding bankruptcy, chapters, filing, or simply answering any questions you may have, contact Minnesota Bankruptcy Attorney Gregory J. Wald at 952-921-5802 or at BankruptcyMinn.com for a consultation.

How Can I Afford To File For Bankruptcy When I'm Already Short On Funds?

It costs money to hire an attorney and pay a court filing fee. How can you pay for your bankruptcy case when you are already short on funds? Some of the best bankruptcy attorneys offer a free half hour consultation so that you can learn your options. If bankruptcy is not the best option for you, the attorney may be able to suggest other options, such as debt settlement or loan modification.

For a Chapter 7 case in Minnesota, the attorney’s fee must normally be paid in full before the bankruptcy case is filed. However, some attorneys are willing to accept installment payments over several or more months. When the fees are paid in full, the case is filed. May people use income tax refunds. Some people borrow the funds from friends or relatives. The attorney may be able to accept a credit card payment from a friend or relative.

If you file for Chapter 13 bankruptcy, you can pay all or most of the attorney’s fee through the debt consolidation plan over a period of three to five years. Chapter 13 does not require full payment of debts, so the payment can be affordable.

If you have some questions about bankruptcy, the law firm of Gregory J. Wald will answer your questions with a free consultation. Call us at 952-921-5802 or send us a message at www.BankruptcyMinn.com