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Filing Chapter 7 Bankruptcy Relief

Filing Chapter 7 is often the quickest and least expensive method of reducing or eliminating debt. The attorneys at Hess & Jendro Law Office, P.A., have filed hundreds of Chapter 7 bankruptcy cases throughout Minnesota over the last 15 years. In most cases, within just three months of filing, the debts are discharged and you can begin to rebuild your credit.

Chapter 7 eliminates the following debt in most cases:

  • Credit cards
  • Department store cards
  • Gas cards
  • Medical bills
  • Payday loans
  • Personal loans
  • Old income tax debt*
  • Delinquent utility bills
  • Association dues**
  • Car loans and home loans***
  • Deficiencies after repossession or foreclosure

*Chapter 7 bankruptcy discharges tax debt if the return was filed at least two years before filing. Consult with an experienced bankruptcy attorney at Hess & Jendro Law Office, P.A., to determine if your specific tax debt is dischargeable.

**Chapter 7 bankruptcy discharges past due homeowners association dues. Ongoing dues will be owed as long as you own your property.

***Car loans and home loans are discharged in bankruptcy. Because the lender has a secured interest in your car (named on your title) or in your home (mortgage), you have the options of continuing to pay your lender to keep your car or home or you can surrender your car or home to get out of the loan. Consult with an experienced bankruptcy attorney at Hess & Jendro Law Office, P.A., for more information.

Other Benefits Of Filing A Chapter 7 Bankruptcy

These debt relief benefits include:

  • Stops foreclosure and repossessions
  • Gives some time for you to catch up
  • Stops utilities from being shut off
  • Stops creditor harassment
  • Stops wage garnishments
  • Prevents judgments
  • Stops bank levies
  • Stops payment plans
  • Provides the first step in improving your credit score

Retaining Your Assets In Chapter 7

People worry about losing their car, retirement account, home or other assets in a bankruptcy. While Chapter 13 debt relief is well-known for allowing people to hold onto many assets, the bankruptcy code and Minnesota state law provide exemptions that allow you to keep assets, even in a Chapter 7 bankruptcy. For instance, you can keep pensions, IRAs, 401(k) retirement accounts and similar retirement assets. You can keep some life insurance cash value, Social Security benefits, considerable equity in your home, jewelry and ― if you choose exemptions found in the bankruptcy code ― even some value in boats, snowmobiles, motorcycles and similar types of property.

Chapter 7 Stops Creditor Harassment

Immediately after the filing of the bankruptcy, an “automatic stay” is in place. Because it is a violation of the bankruptcy code for a creditor to attempt to collect a debt after the bankruptcy is filed, you will get immediate relief from annoying phone calls, and creditor lawsuits are dismissed.

It Is Best Not To Delay

We realize that most people want to pay their bills and do not want to file bankruptcy. However, sometimes people drain their assets to pay off debt, only to find they still cannot dig themselves out. Before you withdraw money from your retirement accounts, refinance your home to use the equity or have anxiety because your debt is unmanageable, schedule a free consultation with one of our attorneys. We can help save the assets you will need in the future. We will advise you of your options, help you develop a financial plan and bring you relief from the stress of your debt.

Contact Us Today If You Are Contemplating Bankruptcy

Please call our bankruptcy lawyers in Elk River at 763-200-6626 or contact us online today to schedule an appointment. We are not here to judge you. We are here to help you find viable and legal financial solutions.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.