Consumers may avoid Foreclosure Cottage Grove MN by filing bankruptcy. This action presents them with an automatic stay which will stop all efforts by their lender to seize the property. However, he or she must pass the means tests for Washington County. To qualify for chapter 13, which presents a longer automatic stay, he or she must have an income that is higher than $65,825, Any income that is lower than this median will qualify for chapter 7 only. The consumer must possess an adequate amount of property and assets in order to benefit fully from this liquidation-based chapter. Visit website for more information.
Chapter 7 Bankruptcy in Minnesota
All bankruptcy cases require that the consumer participate in a state-approved credit-counseling program prior to filing a claim. Consumers with lower incomes, typically, qualify for this chapter based on the results of the means test for Washington County. In this process, the consumer’s assets and property values should equate to more than they owe to creditors.
Chapter 7 allows the court to appoint a trustee who oversees the sale of all properties and assets. He or she will submit payment to creditors on the consumer’s behalf. Additionally, the trustee will remit the value of exemptions that apply to these items back to the consumer. The state of Minnesota provides a guideline for these exemptions and may allow doubling for married couples in some cases.
In essence, this bankruptcy chapter provides the consumer with a clean slate. However, it is at a cost. The bankruptcy will appear on their credit history for at least seven years after discharge. Some counties may require further credit-counseling after debts are settled. This is to prepare him or her for further challenges associated with their finances and prevent future hardships due to mismanagement.
Some attorneys may also offer assistance for these consumers. They aid them in re-establishing credit in ways that are conducive to proper handling of debts. These services may allow them to generate a budget that works for them and may lessen the blow of the bankruptcy. Any consumers who are facing Foreclosure, should contact the Lamey Law Firm Cottage Grove, MN to begin the bankruptcy process.