Is Bankruptcy Right for Me or My Business?

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COVID-19 has caused many Americans, including Minnesotans, to experience hard times that they could have never anticipated. Local businesses are closing and people have lost their jobs.  If a business or family was struggling before, the pandemic likely spiraled them into a financial hole that feels impossible to climb out of without help.  For some, much-needed relief may be found in bankruptcy.

Reduced income, mounting debt, and financial fears are stressing people out today on a level not seen since the Great Depression. Money is certainly the biggest stressor in life experts, say, and a main reason companies shut down and couples divorce.

Edina Bankruptcy Attorney

If you or your business is struggling, bankruptcy may be a wise option for you.  Our experienced bankruptcy attorneys at MLG Bankruptcy will walk you through the process and be there every step of the way.  Bankruptcy can offer a fresh start, possibility without having to close your business or give up your property.  Whether you want to restructure or wipe out what feels like insurmountable debt, we can help.

Give our Edina bankruptcy law firm a call at 952.841.9000 or fill out our contact form to set up a free consultation.

How Bankruptcy Can Help

Bankruptcy is a set of federal laws and rules designed to assist people and businesses who are finding it impossible to pay their debt.  Bankruptcy has long had a negative connotation, but in reality, it can serve as a way to start over instead of sinking deeper.

Bankruptcy may allow you or your business to liquidate assets to pay debts or set up a repayment plan.  It can eliminate harassing creditor calls and letters and stop you and your business from being sued for a debt.  That peace of mind alone is highly beneficial as you move forward.

Most bankruptcy cases are filed under the three main chapters of federal code: Chapter 7 for businesses and consumers, Chapter 11 for businesses, and Chapter 13 for consumers.

How the Bankruptcy Process Works

1.   A petition is filed.  A petition for bankruptcy may be filed by a single individual, a married couple, or by a business entity. Assets, income, liabilities, and the names of all creditors must be included, including credit cards, mortgage lenders, and commercial loans.  Student loans also must be disclosed but note most student loans cannot be discharged in a bankruptcy.

2.   All creditors are notified by the court. When notified, most collections attempts are automatically prevented from moving forward against you, your business, or your property.  That includes wage garnishment, liens, lawsuits, and harassing phone calls.

3.   Assets may be liquidated and restructuring of debts may begin. At the end of the case, debt is often discharged, depending on your individual situation.

Can I File Bankruptcy Without an Attorney?

The law allows you to file bankruptcy for yourself or your business without an attorney’s assistance.  However, the bankruptcy courts advise against taking that move.

Bankruptcy law is complex.  A bankruptcy attorney can help you decide which chapter is right for you, help protect your assets, and determine which of your debts can be discharged.  There is too much at stake – financially and personally – to try to go it alone.  Our compassionate, experienced bankruptcy lawyers at MLG Bankrutpcy can guide you every step of the way.

Our attorneys will:

·                Advise you on whether to file a bankruptcy petition.

·                Determine which chapter you should file.

·                Look at your debts and determine whether your debts can be discharged.

·                Advise you on whether or not you will be able to keep your home, car, or other property after you file.

·                Decide if you should continue to pay creditors.

·                Explain bankruptcy law and procedures to you.

·                Help you complete and file forms.

·                Assist you with all aspects of your bankruptcy case. 

What is Chapter 7 Bankruptcy?

Filing Chapter 7 bankruptcy eliminates most unsecured debts – such as medical bills and credit cards – without the need to pay back balances through a repayment plan.  A bankruptcy trustee is appointed to oversee the case.  Chapter 7 can be filed by both businesses and individuals.  Along with reviewing your bankruptcy documents, the trustee’s job is to sell any property you have to turn over to pay towards your debt.  If you don’t have to turn over any assets, though, your creditors receive nothing.  The amount of your income and the value of your assets are usually the determining factors for eligibility for Chapter 7. 

What is Chapter 13 Bankruptcy?

Chapter 13 is a reorganization of debt.  It’s ideal for individuals who still have income and the ability to make a monthly payment toward a court-approved payment plan.  Chapter 13 is often used when someone has too many assets or has too high of an income to qualify for Chapter 7.  Most repayment plans stretch between three to five years.

What is Chapter 11 Bankruptcy?

Chapter 11 is a form of bankruptcy that involves a reorganization of the debtor’s affairs, debts, and assets.  The terms of which are set out in a plan of reorganization.  Chapter 11 is similar to Chapter 13 but is more complex.  Most businesses that file Chapter 11 can continue operations.  It is important to have an experienced business lawyer guiding you through the process.

Get Help Today 

Have a question about bankruptcy, foreclosure defense, or another legal matter?  Contact the Edina law firm of MLG Bankruptcy.  Our Twin Cities attorneys are ready to help you take back control of your finances and give you some relief.  Call 952.841.9000 today or you also can fill out our confidential contact form.  You first consultation is free.

About Morris Law Group 

At MLG Bankruptcy, we don’t just counsel our clients.  We invest in them.  Our attorneys have been serving the Edina and Twin Cities communities since 1974.  Our attorneys provide personalized, cost-effective legal services to clients seeking help in real estate, business development, commercial litigation, business bankruptcy, personal bankruptcy, commercial loan modification, debt reorganization, personal injury claims, family law, and other matters.

Our experienced attorneys believe that client relationships matter. We advocate for our clients with professionalism, vigor, and with a results-driven approach. 

Our lawyers appear regularly in state and federal court, in administrative hearings, and in various alternative dispute resolution forums, including mediation and arbitration.

Let’s get started today! For more information or to book a free consultation, call 952.841.9000 or fill out our confidential contact form.