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Bankruptcy Process

Bankruptcy Process

One of the many questions that we get asked by our clients is how long will the whole process of bankruptcy will take. This is a valid question and the good news is that it shouldn’t take too long. The average Chapter 7 bankruptcy case can be completed in as little as three or four months. For Chapter 13 bankruptcy, the case is not considered ‘closed’ until after your debts are discharged which will be after your three to five year payment plan ceases. Below is a brief time frame for bankruptcy.

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Step One: Meeting with a Minnesota Bankruptcy Lawyer

The first thing you need to do is talk to an experienced Minnesota bankruptcy attorney about your situation. At the Buettner Law Group, LLC we offer a free initial consultation to discuss your situation. During this time we will assess your case and determine if chapter 7, chapter 11, chapter 13 or another alternative is the best option for you. Chapter 7 and chapter 13 bankruptcy follow very similar processes but the differences will be explained during our initial meeting.

During the first phrase we will need to collect documentation to file for bankruptcy. This means we will need income statements, expense sheets, assets documentation and several other pieces of information which we will talk to you about when we meet with you. After we have all the documentation, we can file for bankruptcy on your behalf. As soon as the petition is filed an automatic stay will protect you from harassment, wage garnishment and foreclosure.

Step Two: Creditor Meetings

You will need to attend one financial management counseling session when you file for bankruptcy. You must also attend a creditors meeting known as 341 meeting. Creditors are also invited to attend but they rarely do. Creditors will have 60 days to file objections on your bankruptcy claim. If there are no objections within 60 days, then your debts will be discharged.  In a chapter 13 bankruptcy, your debts will not be discharged until the completion of the debt management plan after three to five years.

Step Three: Debt Discharge and Management

This is probably the main reason why people choose not to even consider bankruptcy. However, this is not the case. There is a big difference between unsecured and secured debt and you will be able to keep your property, personal belongings and even vehicle under many instances. This is almost always the case under Chapter 13 bankruptcy and can also be true under Chapter 7 bankruptcy as well. It simply depends on your situation.

During this time in your life you are probably faced with enough stress as is without worrying about the logistics of filing for bankruptcy. This is why we do the hard work for you. We will ensure that you understand all your financial options and that the process is made as simple as possible. Brea Buettner-Stanchfield and her team at the Buettner Law Group, LLC are available any time of the day and can help you with any problems or concerns you have during this process. Contact us today at 612-377-5311 for a free initial consultation.